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MILWAUKEE – Joy Global Inc. on Thursday reported a 66 percent
drop in its first quarter profit as a result of the mining
industry struggling with an oversupply of coal and curtailed
equipment purchases.
The Milwaukee-based company's net income for the quarter that
ended Jan. 31 fell to $48.9 million, or 48 cents per share, from
$142.1 million, or $1.33 a share, in the first quarter of 2013.
Revenue in the recent quarter fell 27 percent to $839.3 million,
the company said.
According to a statement, Joy Global expects coal demand to
improve this year; however, demand for mining equipment is
likely to remain muted.
The company’s equipment bookings dropped 16 percent to $860.5
million in the recent quarter.
"While comparison with the first quarter of fiscal 2013 is
difficult, I am pleased with our team's execution against plan
in what is expected to be our slowest quarter of the fiscal
year," said Ted Doheny, president and Chief Executive Officer.
"During the quarter we continued to move forward on our cost
reduction programs which will help mitigate the impact from
lower volumes during the year.”
“In addition, our continued execution of operational excellence
and one Joy Global initiatives will position us well when market
demand increases and provides us with the ability to generate
improved leverage on future growth opportunities,” he added.
www.joyglobal.com |
