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Joy Global earning sinks again, claims demand for mining equipment care coming back

Mining equipment maker Joy Global (NYSE:JOY) logged Thursday a 65% decline in its fiscal first-quarter earnings, as demand for gear remains slow.

The Milwaukee-based company however, noted that maintenance revenue was picking up, as companies can no longer delay old equipment repairs and tune-ups.

"While the economic outlook is improving and should provide some demand catalyst, commodity oversupply and a depressed pricing environment are straining miner cash flows and slowing capital expenditures," Joy Global Chief Executive Ted Doheny said in a statement.

The equipment supplier raised the low-end of its earnings guidance for the year, now anticipating $3.10 to $3.50 a share, up from $3 to $3.50. Joy also backed its revenue outlook.

 


Image courtesy Joy Global.



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