Joy Global profit drops on weak mining equipment demand
Mining equipment manufacturer Joy Global (NYSE:JOY) reported Thursday a 59% drop in quarterly profit as it continues to face declining underground mining equipment sales.
The company, which gets over 65% of its revenue from coal companies, said that while improving economic conditions should drive demand, commodities remain oversupplied.
"Challenging market conditions continue to impact our business despite incremental positive signs on the horizon," Chief Executive Ted Doheny said in a statement.
Joy Global's bookings, an indication of future sales, fell by 7.2% to $1.05 billion from $1.13 billion in the same period of 2013.
The equipment giant said one area we the firm has seen growth is in the oil sands market. “We received a large order this quarter for several electric mining shovels which will add to our fleet currently working in the Canadian oil sands region,” Doheny added.
Over the last four quarters, the Milwaukee-based company’s revenue has fallen an average of 20% year-over-year.