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Equipment maker Joy Global revenue falls as miners cut output

Joy Global
Source: Joy Global

Mining equipment maker Joy Global, which gets more than 60 percent of its revenue from coal miners, reported a 4 percent fall in quarterly revenue as customers cut production.

The company, which warned of a 'challenging' first quarter, forecast profit below analysts' average estimate for its year ending October 2015.

"Challenging market conditions have led a number of our customers to announce their intention to take partial or full shut-downs for various periods of time during our first fiscal quarter," CEO Ted Doheny said in a statement.

Prices of coal and iron ore have fallen to multi-year lows this year as supply has outpaced demand. The European coal futures fell to their lowest level in more than seven years on Monday.

Coal prices are at five-year lows and the International Energy Agency has forecast global coal demand slowing over the next five years.

Joy Global forecast a profit of $3.10-$3.50 per share for 2015, below the average analyst estimate of $3.57, according to Thomson Reuters I/B/E/S.

The company said it expected revenue of $3.6 billion-$3.8 billion, largely below market estimate of $3.79 billion.

Overall bookings at Joy Global fell 27 percent in the fourth quarter ended Oct. 31.

Net income rose to $136.9 million, or $1.38 per share, from $26.8 million, or 25 cents per share, a year earlier, as the company cut costs.

Excluding items, the company earned $1.25 per share. Analysts on average had expected a profit of $1.15 per share.

The year-earlier quarter included a non-cash charge of $155.2 million.

Revenue fell to $1.13 billion from $1.18 billion, but was above the analysts' average expectation of $1.05 billion.