Joy Global 4th-quarter net income climbs

AP News
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Posted: Dec 14, 2011 7:30 AM
Joy Global 4th-quarter net income climbs

Mining equipment maker Joy Global Inc.'s fiscal fourth-quarter net income climbed 18 percent, helped by a recent acquisition and higher bookings as customers increased production.

But the Milwaukee company cautioned on Wednesday that production in the near future may increase at a "more tempered pace" as demand for commodities weakens. Uncertainty about the health of the global economy, and demand for the raw materials that power it, may cause customers to scale back on orders, the company said.

Joy Global forecast 2012 earnings of $7 to $7.40 per share on revenue of $5.3 billion to $5.5 billion. Analysts polled by FactSet predict earnings of $7.18 per share on revenue of $5.4 billion.

In the August-October quarter, Joy Global posted net income of $172.3 million, or $1.61 per share. That compares with earnings of $146.3 million, or $1.39 per share, a year earlier.

Costs related to its $1.1 billion acquisition of drilling- and mining-equipment maker LeTourneau Technologies Inc. in June hurt earnings by 7 cents per share.

Adjusted income from continuing operations was $1.82 per share. Analysts expected earnings of $1.86 per share.

Revenue increased 27 percent to $1.34 billion from $1.05 billion as customers ordered more equipment to increase mine production and start new mines. Heavier mine volumes and more difficult mining conditions also boosted orders, Joy Global said.

Wall Street had estimated higher revenue of $1.36 billion.

Quarterly bookings climbed 33 percent to $1.39 billion, benefiting from a $116 million contribution from the LeTourneau acquisition.

For the year, Joy Global earned $609.7 million, or $5.72 per share. In the prior year the company earned $461.5 million, or $4.40 per share.

Adjusted income from continuing operations was $5.89 per share.

Annual revenue rose 25 percent to $4.4 billion from $3.52 billion.

Shares fell $1.55, or 1.8 percent, to $83 in premarket trading.