Coal and copper weigh on Joy Global results

The mining supplier summarized its Q2:

• Service bookings $595 million, down 15 percent from a year ago
• Net sales $810 million, down 13 percent from a year ago
• Earnings per diluted share $0.40, compared to $0.73 a year ago
• Excluding pension settlement and restructuring charges of $24 million, adjusted earnings per diluted share $0.59, compared to $0.76 a year ago
• Completed €110 million acquisition of Montabert in June, an underground hard rock mining equipment and service provider

The company listed woes in copper, iron ore and coal as adversely affecting the business, but says look to the medium-term:

“While global mining markets attempt to establish a trough, concern over end-user demand for commodities and oversupplied markets still persists,” wrote Joy Global.

“Although the expected medium-term recovery and expansion in the mining market may be closer, the near-term austerity measures and asset consolidation in the mining industry continue to adversely affect the business.”

Image by Han Jun Zeng