Joy Global posts first-quarter loss, but will pay dividend
Shares in Joy Global (NYSE:JOY) were slightly down Thursday morning after the US-based heavy equipment maker reported a loss of $277,000 in its fiscal first quarter.
The Milwaukee-based company, which is in the process of being acquired by Japanese mining equipment maker Komatsu (TYO: 6301), said the loss was equivalent to 1 cent on a per-share basis. However, after adjusting it for one-time gains and costs, the loss came to 6 cents per share.
Joy will pay a dividend of $0.01 per share by March 31, provided that the proposed merger with Komatsu America Corp. does not close before March 17.
Despite the results, the company said it would pay a dividend of $0.01 per share by March 31, provided that the company’s proposed merger with Komatsu America Corp. does not close before the close of business on March 17, 2017.
Such deal, Komatsu’s biggest-ever acquisition, is set to boost the Japanese firm's ability to compete with Western rivals, particularly Caterpillar (NYSE:CAT).
Once completed — merger is expected to close mid-2017 — Joy Global is expected operate as a separate subsidiary of the Tokyo-based firm, the world's second-biggest mining and construction equipment maker.
The company will retain the Joy Global name and headquarters in Milwaukee, company officials have said.
Currently, Komatsu only makes surface-mining equipment, while Joy is the largest independent manufacturer of machines used underground.
Joy Global shares were down 0.05% to $28.18 in New York at 9:46 am ET. The stock, however, has gone up almost 1% since the beginning of the year.