MILWAUKEE — Joy Global Inc. said Thursday that its fiscal first-quarter net income fell nearly 52 percent from a year ago as the company's customers bought less of its mining equipment. The company also cut its outlook for the year. Its shares fell almost 5 percent in afternoon trading.
Customers are spending less on mining equipment because of falling oil prices, CEO Ted Doheny said in a statement. Due to the weakened demand, the company will try to cut costs faster than it had expected.
The company reported earnings of $23.6 million, or 24 cents per share, in the quarter ending Jan. 30. That compares with $48.9 million, or 48 cents per share, in the same quarter a year ago.
Earnings, adjusted for restructuring costs and pretax expenses, were 25 cents per share. The results missed Wall Street expectations. The average estimate of 13 analysts surveyed by Zacks Investment Research was for earnings of 38 cents per share.
Revenue fell 16 percent to $703.9 million in the period, also falling short of Street forecasts. Seven analysts surveyed by Zacks expected $749.4 million, on average.
Joy Global now expects full-year earnings in the range of $2.50 to $3 per share, down from its previous forecast between $3.10 per share and $3.50 per share. Analysts expected earnings of $3.20 per share, according to FactSet. The company expects revenue in the range of $3.3 billion and $3.6 billion, down from its previous forecast between $3.6 billion and $3.8 billion. Analysts expected revenue of $3.63 billion.
Shares of Joy Global fell $2.02, or 4.8 percent, to $40.11 in afternoon trading. Its shares have fall 16 percent so far this year
Elements of this story were generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on JOY at http://www.zacks.com/ap/JOY
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