Decline in commodity prices results in Joy Global losses
Dec. 17, 2015
MILWAUKEE - As
the prices of commodities continued to fall during the fourth
quarter, Joy Global reported a $1.34 billion loss.
Milwaukee-based worldwide provider of high-productivity mining
solutions reported Wednesday that oversupplied commodity markets
drove customer capital expenditures down approximately 18 percent
year-over-year. In addition, fourth quarter bookings were $617
million, a decrease of 21 percent when compared to the fourth
quarter of 2014.
Joy Global also
reported that fourth quarter losses due to weakened markets was
$1.338 billion or $13.24 per diluted share.
global commodity markets declined further as supply surpluses led to
prices of most major commodities falling well over 25 percent which
adversely impacted our bookings rate,” said Ted Doheny, president
and CEO, in a statement. “Despite the resulting significant drop in
our sales volume, we were able to deliver solid adjusted operating
profit margins and strong cash generation. In an effort to stay
ahead of the market, we implemented further cost reductions and
accelerated our footprint optimization plans.”
Doheny said the
company remains committed to driving its growth strategies and
“prudently” managing its balance sheet.