Joy Global Inc.
) reported adjusted earnings of $1.31 per share in the first
quarter of fiscal 2013, beating the year-ago number by 4%. The
results of the company were 17 cents higher than the Zacks
Consensus Estimate of $1.14 for the quarter.
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GAAP earnings per share for the first quarter were $1.33, in line
with the prior-year quarter. The difference between GAAP and
operating earnings in the quarter emanated from the impact of a
gain of 3 cents and a restructuring charge of 1 cent.
Joy Global reported net sales of $1,149.9 million in the first
quarter of fiscal 2013, up 1.2% from $1,136.2 million reported in
the first quarter of fiscal 2012.
The actual results were ahead of the Zacks Consensus forecast of
The upside was driven by higher contribution from the Surface
Mining Equipment segment while lower contribution from
Underground Mining Machinery and eliminations dragged down total
Highlights of the Release
In the reported quarter Joy Global was able to lower its product
development, selling and administrative expenses by 8.2% to
The decline in costs coupled with an increase in revenues boosted
the margins of the company. Operating income in the quarter
increased 3.4% to $221.1 million.
Total bookings at Joy Global during the first quarter of fiscal
year 2013 were $1.02 billion, down 28.5% year over year. Booking
at Underground Mining Machinery declined 27.2% and at Surface
Mining Equipment dropped 25.1% from the comparable prior-year
Total backlog at the end of the first quarter of fiscal 2013 was
$2.44 billion, reflecting a decline of $0.12 billion from the
fiscal 2012 end backlog.
Net interest expense in quarter was $15.1 million, down 5.6% year
Cash and cash equivalents of Joy Global as of Jan 25, 2013, were
$269.9 million versus $263.8 million as of October 26, 2012.
Cash provided by and/or used in operating activities during the
first quarter of fiscal 2013 was $90.5 million versus ($18.5)
million in the prior-year quarter.
Capital expenditures were $55 million in the first quarter of
fiscal 2013, compared with $49 million in the prior-year quarter.
The company made capital investments to improve its manufacturing
capacity in emerging markets and strengthen its aftermarket
Joy Global expects revenue to range from $4.9 billion to $5.2
billion for fiscal 2013. The company expects fiscal 2013 earnings
per share to range between $5.75 and $6.35.
Other Company Release
Astec Industries Inc.
) reported earnings of 23 cents per share in the fourth quarter
of fiscal 2012, falling short of the Zacks Consensus Estimate of
) announced fourth-quarter 2012 operating earnings of $1.91 per
share, surpassing the Zacks Consensus Estimate of $1.68.
Joy Global continues to face the rippling effect of the sluggish
market conditions of 2012, with its booking in the reported
quarter declining from the comparable previous year quarter.
However, global steel and coal production is on an uptrend with a
similar trend observed in the copper markets. These macro factors
can influence growth at Joy Global. Particularly rising demand
for coal in China and India is expected to improve the fortunes
of this mining equipment manufacturer.
However, slowly declining coal stockpiles, continued Eurozone
debt crisis and the decline in booking make us skeptical of any
quick recovery from 2012 levels.
Joy Global currently retains a short-term Zacks #3 Rank (Hold
rating). Another operator
H&E Equipment Services Inc.
) having a Zacks Rank #2 (Buy) is slated to release its fourth
quarter 2012 earnings on Mar 5, 2013.
Based in Milwaukee, Wisconsin Joy Global Inc. was founded in
1884. The company is involved in manufacturing as well as
servicing of mining equipment. The company serves a global market
through its two segments, Underground Mining Machinery and
Surface Mining Equipment. With a market cap of $6.36 billion, the
company has 18,019 employees.