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Joy Global says cost cutting efforts will continue despite gloomy outlook

  • Joy Global (JOY) mitigated a bit of the damage in its conference call today, after posting poor FQ3 bookings and a weak outlook earlier.
  • The company disclosed details of an expanded cost-cutting effort, with CFO Jim Sullivan noting the company anticipates around $65M in reduced expenses from phase 2, mostly over the next FY - versus a prior target of about $40M.
  • Despite the gloomy revenue outlook, phase 3 of its cost-cutting effort is still expected to be triggered, which should trim another $15M out of the coming year's expense line.
  • The company feels that these efforts, in concert with further in-sourcing, of some manufacturing, will help JOY meet margin targets.
Comments (1)
  • Brett22
    , contributor
    Comments (83) | Send Message
     
    One of the other positive take aways from today's call is that they will be repurchasing $1 BILLION of their stock. At the current price, that is 20% of the market cap. And, the CEO said they will be repurchasing starting tomorrow. Should put a decent base in this huge underperformer.
    28 Aug 2013, 06:09 PM Reply Like
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