Joy Global CEO: Growth Shifting to International Markets
The coal business will see "stable" growth in the U.S. going forward, but Joy Global CEO Mike Sutherlin expects "very strong" demand on the international front, especially in emerging markets.
"We've taken a position that the U.S. for us is going to be a slow growth market," Sutherlin told Cramer on Wednesday's "Mad Money." "We'll see some, but very moderate rates of growth in the U.S. mining market."
Sutherlin has noticed the change over the last 18 months. In that time, he said the U.S. has become more focused on exports. The U.S. market is no longer completely dependent on coal for power consumption, for example.
International markets are now consuming more coal, including and especially China and India. Given concerns over global growth, some worry about demand in these two countries, but Sutherlin said it's all relative.
"Both of those markets we're seeing some slow in GDP growth, but we're seeing a real strong emphasis of infrastructure build, and particularly on the power generation side in the build out of the infrastructure grid," Sutherlin explained.
The 64-year-old executive went on to say that overall, demand is strong and it's not showing any sign of weakness.
To Cramer, this mining equipment maker's stock is worth looking at. It closed at roughly $70 a share on Wednesday, even though it was trading at $103 a share not too long ago. Given the company's future prospects and the fact that demand is strong, Cramer thinks JOYG is a buy.
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