Joy Global Inc. on Thursday reported a fiscal second-quarter loss and a decline in revenue for its 13th consecutive quarter as the mining equipment industry remains mired in a slump.
The Milwaukee-based company reported a loss of $9.8 million, or 10 cents per share, for the quarter ended April 29, compared with a profit of $56 million, or 57 cents per share, a year earlier.
Joy posted revenue of $602 million in the recent three-month period, down 26% from $810 million in the second quarter of 2015.
The company said it now expects 2016 sales to be at the lower end of a previous outlook of $2.4 billion to $2.6 billion. Adjusted earnings also are expected to be at the bottom end of a previously announced range of 10 to 50 cents per share.
Still, the recent results surpassed Wall Street expectations, and Joy Global executives expressed some optimism even as the company has closed some operations and laid off hundreds of workers in Milwaukee.
“Some positive signs have emerged in recent months; however, the mining industry continues to face headwinds from oversupplied commodities and reduced cash flows for most producers,” president and CEO Ted Doheny said in a statement.
“We are now targeting over $100 million of year-over-year cost reductions in fiscal 2016,” he said.
Joy Global stock shares have climbed 32% since the beginning of the year, while the Standard & Poor’s 500 index has climbed nearly 3%. The stock has declined 57% in the last 12 months.
About Rick Barrett
Rick Barrett covers manufacturing, telecom and agriculture. He has received Best in Business awards from the Society of American Business Editors and Writers and was co-recipient of a Barlett & Steele award for investigative business journalism.
