Tags: Mining | Joy Global | Profit | Forecast

Mining Slump Weighs on Joy Global's Profit Forecast

Wednesday, 11 Dec 2013 12:06 PM

Mining equipment maker Joy Global Inc. forecast 2014 earnings below analysts' estimates after reporting a quarterly profit that fell short of expectations as miners cut spending.

Joy Global's shares fell 3 percent before the bell.

Coal miners, who account for about two-thirds of Joy Global's revenue, have cut back on buying equipment as they struggle with a supply glut and weak prices.

"Although we believe our markets overall will begin to improve in 2014, the timing is difficult to predict," CEO-designate Ted Doheny said on Wednesday.

The chief executive of rival Caterpillar Inc, Doug Oberhelman, said much the same in October.

Joy Global expects earnings of between $3.00 and $3.50 per share for 2014, below the average analyst estimate of $3.68, according to Thomson Reuters I/B/E/S.

The company, which supplies giant shovels and draglines, forecast revenue of $3.6 billion to $3.8 billion, largely below analysts' average estimate of $3.8 billion.

Orders fell 19 percent to $1.1 billion in the fourth quarter ended Oct. 25.

Net income from continuing operations fell 87 percent to $26.8 million, or 25 cents per share, from $212.4 million, or $1.99 per share, a year earlier.

The results included an asset impairment charge of $155 million and a net pretax gain of $10 million from other unusual items.

Excluding these items, Joy Global earned $1.11 per share, missing analysts' average estimate of $1.12.

Revenue fell 26 percent to $1.18 billion, but was marginally above the $1.12 billion analysts were looking for.

Doheny, who runs the company's underground mining equipment business, takes over from Mike Sutherlin, who retires in Feb. 1.

Joy Global's shares closed at $56.24 on the New York Stock Exchange on Tuesday. The stock has fallen about 12 percent this year.

© 2017 Thomson/Reuters. All rights reserved.

 
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Mining equipment maker Joy Global Inc.forecast 2014 earnings below analysts' estimates after reporting a quarterly profit that fell short of expectations as miners cut spending.
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2013-06-11
Wednesday, 11 Dec 2013 12:06 PM
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