Joy Global Inc. Announces Fiscal Second Quarter 2011 Results

Joy Global Inc. Announces Fiscal Second Quarter 2011 Results
Joy Global announced that second quarter bookings increased 46 % to $ 1.5 billion and net sales increased 19% to $1.1 billion, compared to the same period last year. Their Operating income of $234 million accounted for 22% of sales compared to the operating income of $181 million which was 20% of sales. Net income was $162 million which is equivalent to $1.52 per fully diluted share up from $1.15 per share.

During the second quarter Joy Global key acquisition of LeTourneau will complement their already successful electric rope shovels and drilling products. New orders for original equipment were 79 percent higher than they were in the second quarter a year ago. The second quarter bookings included benefits of $131 million in the foreign exchange rate, from a weakening in the US dollar compared to the Australian dollar. New equipment orders for electric mining shovels and blasthole drills for use in mining coal, copper and iron ore were received in North America, South America, Russia and South Africa.

The Mining industry remains strong despite slower economic growth. There has been a limited excess mine capacity today and expansion programs are still behind after a hold for most of 2009 into 2010. The seaborne coal has been controlled by the emerging economies, particularly China and India. China’s stockpiles at power plants reached a yearly low for 2 weeks in April, which has created concerns for power shortages this coming summer. Along with fears of a drought, the response would be a reduction in the usage of Hydro generation and it should increase coal burn for replacement power generation. India plans to double its rate of growth in power generation between 2010 and 2012, as well. In Japan, failed nuclear generators are expected to be replaced by previously shuttered coal plants.

The company raised their diluted earnings per share expectations to $5.30 to $5.60 up from $5.10 to $5.40. Following the positive announcement the company was trading at $90.512 + 4.627 (5.39%) on the day.

-Jim