Joy Global bookings up 46% in Q2
Joy Global Inc. had a successful second quarter. The mining equipment manufacturer reported net income of $162 million for the second quarter of 2011, or $1.52 per share, compared to $120 million, or $1.15 per share, for the same period last year. Second quarter bookings were up 46% to $1.5 billion, while net sales jumped 19%.
"We had another outstanding quarter, reaching record levels of performance in order bookings, shipments, operating profit margins and earnings per share,” said Mike Sutherlin, President and Chief Executive Officer.
Sutherlin pointed to Joy Global's recent $1 billion acquisition of LeTourneau Technologies as an important complement to its rope shovel capability, by expanding into the wheel loader and drilling products markets.
Joy Global says the equipment industry is still feeling the effects of the global recession, with expansion programs slow to ramp up after being put on hold for most of 2009 and 2010. However, the company says the industry continues to deploy record levels of capex, citing declining ore grades and the need to account for routine production outages from weather, geology and labor issues.
Joy Global anticipates full-year revenues to be in the range of $4.1 to $4.3 billion, up from its 2010 guidance of $4.0 to $4.2 billion.
- Second quarter bookings in the underground equipment business were up $223 million from the prior year quarter. Original equipment orders increased by $149 million, due primarily to longwall equipment orders in Australia and the continued strong demand for room and pillar equipment in the U.S. Aftermarket bookings increased $74 million in the second quarter, due to strong parts and component orders across most markets and an increase in service labor bookings in Australia. Machine rebuilds were down from the exceptionally high levels of last year, but continue the trend of long-term growth in aftermarket rebuilds.
- In the surface equipment business, bookings increased by $272 million in the second quarter compared to the prior year quarter. Original equipment orders more than doubled, increasing by $205 million, and aftermarket bookings increased by $67 million. New equipment orders for electric mining shovels and blasthole drills for use in mining coal, copper and iron ore were received from customers in North America, South America, Russia and South Africa. The increase in aftermarket bookings was due to strong demand for replacement parts across most geographic regions.
Image by Joy Global Inc.