Milwaukee-based mining equipment manufacturer Joy Global Inc. continues to face major headwinds with the slumping mining industry.
Joy Global today reported fiscal third quarter net income of $44.9 million, or 46 diluted earnings per share, down 37 percent from $71.3 million, or 71 diluted earnings per share, in the previous fiscal third quarter.
The company’s net sales for the quarter were down 9.5 percent to $792.2 million.
“Our financial results for the third quarter reflect an end market environment that is one of the most challenging seen in decades,” said Ted Doheny, Joy Global’s president and chief executive officer. “The further step down in commodity prices resulted in projects getting delayed and a lock down on cash from our customers which impacted our service business. We are accelerating our facility optimization plans and taking additional cost reduction actions to align with lower market demand. (It was a) tough quarter for us…”
Declines in commodity prices, slowing economic growth in China and slower than expected growth in the U.S. have hurt Joy Global’s performance, the company said. Overall, the global mining industry remains strained as miners navigate through a sharp and prolonged downturn, the company said.
“We are continuing to take proactive steps to better position the company for the eventual market recovery,” said Doheny. “Our focus remains on prudently managing the business through the current market downturn as well as providing the world-class service and technical expertise that our customers expect and need. We will continue to invest strategically in areas that provide value to our customers and returns to our shareholders.”
