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Joy Global Inc. (NYSE: JOY), a worldwide leader in high-productivity mining solutions, today reported fourth quarter and fiscal 2013 results.
Fourth Quarter Highlights
Bookings down 19 percent from a year ago to $1.1 billion; Sales down 26 percent to $1.2 billion
Earnings per diluted share at $0.25; Adjusted earnings per diluted share at $1.11 down 47 percent from a year ago
Adjusted earnings exclude a $155 million pretax non-cash intangible asset impairment charge associated with the Joy Global branding initiative and a $10 million net pretax gain from other unusual items
Cash from operations of $195 million, down 7 percent from a year ago
Repurchased 4.1 million shares
Fourth Quarter and Full Year Operating Results
“This quarter once again demonstrates outstanding execution in a difficult market,” said Mike Sutherlin, President and Chief Executive Officer. “We were very encouraged by the sequential recovery of aftermarket orders. This puts us almost back to the levels of a year ago, even though some regions are still lagging. It was especially good to see the return of machine rebuilds to the U.S. underground business, which is an important step in the recovery of this market segment.
“As lead times come down, the historical lumpiness has returned to our order rates. The third and fourth quarter bookings bound a range that we expect to continue in 2014. Although we booked a major longwall project this quarter as expected, there are fewer other projects moving forward which meet today’s stringent criteria of operating on the lower half of the global cost curve.
“With a limited number of projects that can book in time to help 2014, we continue to see both the need and opportunity to lower the cost base in our business. Much of the costs we have taken out so far are structural reductions coming from our Operational Excellence program and One Joy Global initiative, and this will improve our leverage on market recovery. We have made substantial progress in streamlining our businesses and regions, and are now taking the next step of consolidating our surface and underground businesses and products under the Joy Global brand. Although the reduced value of the separate brands results in a non-cash charge, this is an important step that will continue to make us more efficient, responsive and competitive.”
Bookings - (in millions)
Underground Mining Machinery
Surface Mining Equipment
Total Bookings by Segment
Total Bookings by Product
Total bookings decreased 19 percent from last year to $1.1 billion in the fourth quarter of fiscal 2013. Original equipment orders decreased 38 percent while aftermarket orders declined 3 percent when compared to the prior year period. The current quarter bookings were reduced by $22.4 million for the impact of foreign exchange, with original equipment and aftermarket bookings reduced by $2.9 million and $19.5 million, respectively. When adjusted for foreign exchange, current quarter bookings were down 17 percent from the same period last year with original equipment orders down 37 percent and aftermarket orders flat. On a sequential basis, current year fourth quarter aftermarket and original equipment bookings increased 19 percent and 279 percent, respectively.