MILWAUKEE (AP) — Joy Global's fiscal third-quarter net income dropped 5 percent as original equipment orders tumbled amid weak market conditions. But its adjusted results and revenue beat Wall Street's expectations.
President and CEO Mike Sutherlin said in a statement that the Milwaukee company is cutting costs to help contend with softer market conditions.
Joy Global Inc. also announced Wednesday that it plans to repurchase up to $1 billion of its stock over the next three years.
Its shares rose 49 cents to $51.80 in premarket trading about three hours ahead of the market opening.
For the period ended July 26, the coal mining equipment supplier earned $183.2 million, or $1.71 per share. That's down from $193.5 million, or $1.81 per share, a year earlier.
Removing restructuring charges and tax benefits, earnings were $1.70 per share. Analysts polled by FactSet expected adjusted earnings of $1.36 per share.
Revenue fell 5 percent to $1.32 billion from $1.39 billion as sales of underground mining machinery and surface mining equipment declined. Wall Street forecast revenue of $1.17 billion.
Total bookings dropped 36 percent to $695 million. Original equipment orders slid 76 percent, with aftermarket orders down 13 percent. Backlog, which is an indication of potential future revenue, fell to $1.6 billion from $2.2 billion.
Joy Global maintained its forecast for full-year earnings of $5.75 to $5.95 on revenue in a range of $4.9 billion to $5 billion.
Analysts predict earnings of $5.84 per share on revenue of $4.95 billion.
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