UPDATE 1-Joy Global hit by lower demand for mining equipment

* First-quarter revenue drops 27 pct to $839.3 mln

* Earnings $0.48/share vs $1.33 a year earlier

* Bookings fall 16 pct to $860.5 mln

March 6 (Reuters) - Joy Global Inc, a mining equipment maker, reported a 66 percent fall in quarterly profit as coal miners struggling with oversupply cut spending.

Demand has fallen for equipment such as longwall shearers, giant shovels and draglines due to a decrease in capital expenditure by top U.S. coal miners such as Peabody Energy Corp , Alpha Natural Resources Inc and Arch Coal Inc .

Joy Global, which gets about two-thirds of its total revenue from coal miners, has cut costs to offset the impact of lower sales.

The company said on Thursday it expected coal demand to improve this year. However, demand for mining equipment is likely to remain muted.

"Despite improving global economic conditions, most major commodities remain oversupplied with pricing well below peak levels," the company said.

Equipment bookings at Joy Global fell 16 percent to $860.5 million in the first quarter ended Jan. 31.

Net income fell to $48.9 million, or 48 cents per share, in the first quarter from $142.1 million, or $1.33 per share, a year earlier.

Excluding items, Joy Global earned 49 cents per share.

Revenue fell 27 percent to $839.3 million.

Joy Global's shares closed at $55.79 on the New York Stock Exchange on Wednesday. They have declined about 10 percent in the past 12 months, compared with a 26 percent rise in the Dow Jones U.S. Industrials index.