Joy Global Profit Declines, To Buy Back Up To $1.0 Bln In Shares

(RTTNews) - Mining equipment maker Joy Global Inc. (JOY) Wednesday reported a decline in third-quarter profit, as net sales fell about 5 percent due to weak market conditions, but topped analysts' estimates. The company backed its outlook for the fiscal year and said its board has authorized a repurchase of up to $1.0 billion in shares over the next 36 months.

Original equipment sales decreased 8 percent and aftermarket sales were down 2 percent compared to the prior-year period.

Mike Sutherlin, president and chief executive officer of the company said, "The market has become even more challenging, with declines in order rates for both original equipment and aftermarket."

The firm currently expects order rate to 'take a step down' from its previous outlook. Joy Global, however, said its cost reduction programs are delivering savings ahead of schedule.

Total bookings fell 36 percent to $695 million in the quarter. Original equipment orders dropped 76 percent, while aftermarket orders were 13 percent lower than last year.

In the third quarter, net income attributable to company declined to $183.19 million or $1.71 per share, from $193.52 million or $1.81 per share in the previous year. Earnings from continuing operations in the prior year totaled $1.82 per share.

Excluding acquisition activities and unusual items, earnings per share for the recent quarter was $1.70, while the company posted $1.87 per share in 2012. On average, 19 analysts polled by Thomson Reuters expected the company to earn $1.37 per share for the quarter. Analysts' estimates typically exclude special items.

Net sales for the quarter declined 4.9 percent to $1.32 billion from $1.39 billion in the same quarter last year. Analysts expected revenue of $1.18 billion for the quarter.

Underground Mining Machinery sales fell 4.2 percent to $722.7 million, and Surface Mining Equipment sales were $640.9 million, down 5.1 percent from the preceding year.

For full year 2013, the company still expects earnings per share of $5.60 to $5.80, on revenues of $4.9 billion to $5.0 billion. Excluding restructuring charges and other unusual items, full-year earnings per share are anticipated to be between $5.75 and $5.95. Analysts expect the company to report full-year earnings per share of $5.84, on revenues of $4.94 billion.

Under the share repurchase program, the company may repurchase shares in the open market in accordance with applicable rules and regulations of the Securities and Exchange Commission.

JOY closed Tuesday's regular trading at $51.31 on the NYSE. In the pre-market activity, the shares are currently down 3.06 percent.