Joy Global 3Q earnings jump on surface mining boom

MILWAUKEE (AP) ?€" Mining equipment maker Joy Global Inc. said Wednesday its fiscal third-quarter earnings jumped 46 percent, as overseas appetite for commodities including copper, coal and iron ore continued to drive mining projects in the U.S.

The company also said Wednesday it has agreed to sell the drilling products business of LeTourneau to Cameron International Corp. for $375 million in cash. The deal has been approved by both companies' boards. It is expected to close within 60 days. LeTourneau's drilling products business makes oil rig components and equipment.

In the fiscal third quarter that ended in July, the Milwaukee company earned $173.1 million, or $1.62 per share, compared with year-ago earnings of $118.5 million, or $1.13 per share.

Revenue rose 34 percent to $1.14 billion from $850 million in the fiscal third quarter of 2010.

Analysts expected a profit of $1.51 per share on sales of $1.15 billion.

In addition to strong sales, Joy Global said it benefited from higher prices, some customer contract cancellation fees and less manufacturing overhead.

Third quarter bookings increased 49 percent to $1.4 billion. Original equipment bookings were up 78 percent, while aftermarket orders were 22 percent higher than a year ago.

Bookings for surface mining equipment almost doubled. Orders for underground mining machinery increased 17 percent.

Joy Global said it expects bookings to remain strong, but it does acknowledge that there is "increasing evidence that slowing is underway in economies worldwide, and that growth in the U.S. and Europe may remain structurally lower for several years."

The company added, though, that although economic forecasts have been slower to reflect lower growth prospects through next year, it thinks the global economy is stronger than it was at the start of the recession in 2008.

Shares jumped $3.46, or 4.2 percent, to $86 in premarket trading.

Authors: mining - Yahoo! News Search Results