In the fiscal third quarter profit jumped 46% due to an increase in the underground mining equipment business and bookings.
JOY Global earned $1.61 share in the 3Q, which beat the estimate of $ 1.53. The success in this quarter has resulted in JOYG lifting its earnings from continuing operations of $ 5.70 to $6 share on revenue of $4.3 billion to $4.5 billion.
Gross margin moved to 34.9% from 34.1%. The underground mining business jumped 31%, from 33% increase in original equipment shipments and 29% increase in aftermarket sales. Sales rose 24% at the smaller surface mining segment.
Chief executive Mike Sutherlin commented, “Commodity and energy fundamentals remain intact despite expectations of slowing industrial production and global economic growth. We have not encountered any instances of projects being deferred, delayed or de-prioritized.”
The company is in the process of acquiring Chinese mining-equipment manufacturer International Mining Machinery Holdings Ltd, which would give it access to smaller Chinese mine operators. JOYG announced its plans to sell the drilling products business of LeTourneau acquisition to Cameron International Corp. (CAM) for $375 million in cash.
This positive news comes after the company took a hit from the US economic woes of early August.
As reported at 12:15pm: 85.41(+3.06, 3.72%).