Joy Global profit, sales shrink along with demand for mining equipment

Joy Global (JOY) is little changed in premarket trading after reporting a 59% Y/Y drop in FQ2 earnings and a 32% decline a sales, as demand for underground mining equipment shrinks amid weak coal prices.

JOY, which gets about two-thirds of its revenue from coal miners, said pricing in met coal markets in the first three months of 2014 was the weakest since 2009.

Bookings fell 7.2% to $1.05B from $1.13B in the year-earlier period.

Sales in the underground mining equipment business fell 24% to $518M, while sales from the smaller surface mining segment tumbled 38% to $4434M.

Reaffirms guidance for FY 2014, seeing EPS of $3.10-$3.50 vs. $3.24 analyst consensus estimate and revenues of $3.6B-$3.8B vs. $3.76B consensus.

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