Joy Global misses by $0.02, misses on revs
- Reports Q3 (Jul) earnings of $0.10 per share, excluding non-recurring items, $0.02 worse than the Capital IQ Consensus of $0.12; revenues fell 26.0% year/year to $586.5 mln vs the $605.61 mln Capital IQ Consensus.
- Consolidated bookings in the third quarter totaled $527 million, a decrease of 17 percent versus the third quarter of last year. Original equipment orders decreased 46 percent while service orders were down 12 percent compared to the prior year.
- Although global economic growth showed signs of marginal improvement at the start of the third quarter, activity for most of the year has remained sluggish with global growth tracking below expectations. Continued challenges across most emerging economies, along with marginal growth in developed economies, has resulted in a growth profile tracking just under 3 percent for the year, a slight decline from 2015.
- Company Outlook: "Additionally we delivered our heavy continuous miner systems into salt and gypsum mines during the quarter. The growth we are driving in underground hard rock and a variety of industrial mineral applications is helping to partially mitigate significant pressures in our coal markets around the world...While the recent increase in certain commodity prices is positive, the outlook remains tepid and the financial condition of our customers is challenged, which will continue to impact both the timing and level of our incoming orders through 2017."
- Due to the pending merger transaction with Komatsu America, the company will no longer provide quarterly updated annual financial guidance.
- On July 21, 2016, Joy Global entered into an Agreement and Plan of Merger with Komatsu America Corp. The companies expect that this transaction will be completed by mid-2017