Joy Global Q3 Results Down, Miss Estimates; Declares Dividend - Quick Facts

(RTTNews) - Joy Global Inc. (JOY), which is in about $3.7 billion deal to be acquired by Komatsu America Corp., a subsidiary of Japan's Komatsu Ltd (KMTUY.PK), reported Thursday that its third-quarter net income plunged to $0.1 million or breakeven per share from last year's $51.3 million or $0.52 per share.

The provider of high-productivity mining solutions said its adjusted net income was $9.6 million or $0.10 per share, compared to $57.9 million or $0.59 per share last year.

On average, 18 analysts polled by Thomson Reuters expected earnings of $0.12 per share for the quarter. Analysts' estimates typically exclude special items.

Net sales of $586.55 million declined 26 percent from last year's $792.18 million. Analysts were looking for $605.32 million for the quarter.

Bookings of $527 million were down 17 percent from a year ago and Service bookings of $474 million declined 12 percent.

Ted Doheny, President and Chief Executive Officer, said, "Although market conditions and our incoming order rate remain extremely challenged, our team delivered financial results for the quarter in line with expectations. We continue to drive our strategic growth objectives and surpass our cost savings targets."

Looking ahead, the company noted that while the recent increase in certain commodity prices is positive, the outlook remains tepid and the financial condition of customers is challenged, which will continue to impact both the timing and level of incoming orders through 2017.

In light of persistent difficult market conditions, the company remains focused on reducing cost base.

Further, the company announced that its board of directors has declared a quarterly dividend in the amount of $0.01 per share to be paid on October 3, 2016 to shareholders of record on September 19.

The company added that due to the pending merger transaction with Komatsu America, it will no longer provide quarterly updated annual financial guidance.