Joy Global Now Expects FY16 Sales, Earnings At Lower End Of Prior Guidance

(RTTNews) - Joy Global Inc. (JOY), a worldwide leader in high-productivity mining solutions, announced the company now expects sales and earnings for the year excluding restructuring charges and mark-to-market pension adjustments to be at the lower end of previous guidance range of $2.4 billion to $2.6 billion for sales and $0.10 to $0.50 for adjusted earnings per share. In March, the company projected its sales and earnings for the year excluding restructuring charges and mark to market pension adjustments to be towards the middle of its guidance range of $2.4 billion to $2.6 billion for sales and $0.10 to $0.50 for adjusted earnings per share.

"With lower service sales from the step down in production forecasts for U.S. coal and Canadian oils sands markets, partially offset by increased cost reduction and more sales from growth initiatives, we now expect sales and earnings for the year excluding restructuring charges and mark-to-market pension adjustments to be at the lower end of our previous guidance range," said Ted Doheny, President and CEO.

Analysts polled by Thomson Reuters expect the company to report profit per share of $0.18 on revenue of $2.47 billion. Analysts' estimates typically exclude special items.

The company said it is now targeting over $100 million of year-over-year cost reduction in fiscal 2016.

For the second-quarter, the company reported a net loss from continuing operations of $15.3 million or $0.16 per share compared to profit of $55.9 million or $0.57 per share, prior year. Adjusted net income from continuing operations was $9.1 million or $0.09 per share, for the quarter. On average, 18 analysts polled by Thomson Reuters expected the company to report breakeven on a per share basis for the quarter.

Consolidated bookings in the second quarter totaled $681 million, a decrease of 9 percent versus the second quarter of last year. Original equipment orders increased 12 percent while service orders were down 14 percent compared to the prior year.

Consolidated net sales totaled $602 million, a 26 percent decrease versus the second quarter of last year. Original equipment sales decreased 35 percent and service sales decreased 22 percent compared to the prior year. Analysts expected revenue of $607.72 million for the quarter.

Joy Global also announced that its board has declared a quarterly dividend in the amount of $0.01 per share to be paid on July 6, 2016 to shareholders of record on June 22, 2016.