Joy Global's FQ1 hurt by weak mining equipment demand but shares +0.5%

|About: Joy Global Inc. (JOY)|By:, SA News Editor

Joy Global (JOY+0.5% premarket after its FQ1 earnings fell by two-thirds amid weakening sales, but the result beat analyst estimates, and the mining equipment maker raised the low end of its FY 2014 earnings guidance and reaffirmed its revenue outlook.

FQ1 equipment bookings continued to decline amid weaker commodity prices, fall 16% Y/Y to $860.5M from $1.02B in the year-ago period.

FQ1 sales sank 27% to $839.3M; sales in the underground mining equipment business fell 19% to $477.5M, while sales from the smaller surface mining segment shrank 34% to $400.7M.

JOY, which gets about two-thirds of its total revenue from coal miners, expects coal demand to improve this year but demand for mining equipment likely will remain slow.