Decline in commodity prices results in Joy Global losses

Freeman Staff

Dec. 17, 2015

MILWAUKEE - As the prices of commodities continued to fall during the fourth quarter, Joy Global reported a $1.34 billion loss.

The 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.

“During 2015, 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.