Joy Global Profits Up on Surge in Bookings, Overseas Demand

Posted Dec 15th 2010 11:30AM by Connie Madon
Filed under: Major Movement, Earnings Reports

Here's an interesting company. Joy Global (JOYG) is the only worldwide surface and underground mining equipment company. With underdeveloped countries screaming for raw materials, Joy Global is in a sweet spot, providing equipment to mining companies around the globe.

The Wall Street Journal (subscription required) reported that Joy Global's fourth quarter earnings were up 18% year over year. Profit was at $146.3 million or $1.39 a share, up from $124 million of $1.20 a share last year. Revenue rose to $1.05 billion. Gross margin rose 37.9% from 32.4%.

Here's a breakdown by divisions:

Surface equipment earnings rose 12%, up from 10%.
Underground equipment revenue was up 22%. Sales rose 8%.
Sales in the U.S. rose 1.3%. Elsewhere sales were up 14%.
New equipment orders climbed 48% to $1 billion after being down 44% last year.

With commodity prices remaining strong, prospects for the coming year look good. Looking ahead, the company forecasts earnings of $5.00 to $5.30 on revenue of $3.9 billion and $4.1 billion.

Shares of Joy Global jumped more than 7% Wednesday morning. The stock is up more than 60% year to date.

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