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Joy Global Inc. Reports Operating Results (10-Q)
Posted by: gurufocus (IP Logged)
Date: June 4, 2012 05:21PM

Joy Global Inc. (JOYG) filed Quarterly Report for the period ended 2012-04-27. Joy Global Inc. has a market cap of $5.73 billion; its shares were traded at around $0 with a P/E ratio of 17.6. The dividend yield of Joy Global Inc. stocks is 1.3%. Joy Global Inc. had an annual average earning growth of 33.6% over the past 10 years.



Highlight of Business Operations:

Second quarter 2012 Underground Mining Machinery net sales were $886.6 million, compared to $648.4 million in the prior year second quarter, and included a $198.4 million increase in original equipment sales and a $39.8 million increase in aftermarket sales. IMM added $87.3 million of net sales to the second quarter. The increase in original equipment sales were driven by higher shipments to Australia, Eurasia, South Africa and the U.S. Aftermarket sales increased in all regions with the exception of the United States and Eurasia. Foreign currency translation unfavorably impacted sales by $5.1 million.

Second quarter 2012 Surface Mining Equipment net sales were $692.3 million, compared to the $440.0 million in the prior year second quarter, and included a $175.4 million increase in original equipment sales and a $77.0 million increase in aftermarket sales. The mining equipment business of LeTourneau added $133.2 million of sales during the quarter. Original equipment sales were up in all regions with the exception of South Africa, and were led by increased sales in South America, Russia and Australia. The increase in aftermarket sales is primarily related to sales in South America, Australia and North America. Foreign currency translation unfavorably impacted sales by $0.2 million.

Operating income for the Underground Mining Machinery segment was $201.9 million in the second quarter of 2012, compared to $155.0 million in the second quarter of 2011. Operating income includes $4.0 million from IMM, net of excess purchase accounting charges of $17.4 million. In addition to the $4.0 million attributable to the acquisition, operating income was favorably impacted $53.9 million due to higher sales volumes that were partially offset by an increase of $10.9 million in product development, selling and administrative expenses.

Product development, selling and administrative expense totaled $182.0 million, or 11.8% of sales in the second quarter of 2012, compared to $141.5 million, or 13.3% of sales, in the second quarter of 2011. The inclusion of LeTourneau and IMM increased expenses by $22.4 million. In addition to the $22.4 million attributable to the acquisitions, product costs increased $3.8 million due to the continued innovation in current product offerings and development of new products. Selling costs increased $6.8 million, which was mostly attributable to higher warehousing costs in order to meet higher sales demand.

Product development, selling and administrative expense totaled $353.4 million, or 13.2% of sales, for the six month period, compared to $273.7 million, or 14.2% of sales, for the same period in the prior year. The inclusion of LeTourneau and IMM increased six month expense by $33.6 million. In addition to the $33.6 million attributable to acquisitions, product costs increased $9.0 million due to the continued pursuit of technological advances in current product offerings and the continued development of new products. Selling costs increased $9.0 million, which were mostly attributable to higher warehousing costs to meet higher sales demand.

Read the The complete Report



Stocks Discussed: JOYG,
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