At the closing bell, JOYG climbed 5.13(5.69%) to 95.24. Despite poor US manufacturing results, industrial companies have seen excellent results in the last week and a half. Joy Global’s recent success can be attributed to their acquisition of Letourneau Technologies, which was finalized on June 22(blogged on May 16).
As reported in the release of JOYG’s 2-Q results, China’s stockpiles of coal touched a yearly low in April, which has created a shortage for the coming summer. Also, the effects of major earthquakes and droughts in Asia have created a reduction in the usage of Hydro generation and nuclear generators. This should bode well for coal demand and production. In the 1-Q of 2011, US coal exports rose 49% to its highest level of exports since 1992. The industry witnessed a 160% increase in steam coal demand, in the same period.