Joy Global Inc. (NYSE: JOY) reported fourth-quarter and full-year fiscal 2016 results before markets opened Tuesday morning. The mining equipment maker posted adjusted diluted earnings per share (EPS) of $0.17 on revenues of $656.56 million, compared with EPS of $0.43 and revenue of $865.57 million in the fourth quarter of its 2015 fiscal year. Consensus estimates called for EPS of $0.17 and $666.89 million in revenue.
For the full year, the company reported EPS of $0.13, compared with $1.96 in the 2015 fiscal year. Revenues totaled $2.37 billion, compared with $3.17 billion a year ago
In July the company agreed to be acquired by Komatsu America for $28.30 per share in cash. The acquisition has received an early termination of the Hart-Scott-Rodino Act waiting period, and Joy Global’s shareholders approved the merger on October 19. The transaction is on track to close by the middle of 2017, or earlier depending on regulatory clearances.
President and CEO Ted Doheny said:
In late fiscal year 2016, we saw the beginning of global commodity markets rebalancing as supply surpluses started to be absorbed and pricing improved from decade low levels. Despite these improvements, the mining industry continues to defer capital and maintenance spending, which is reflected in our quarter and full year bookings levels, although the year-over-year rate of decline in service bookings has lessened. Our team once again delivered financial results in line with our expectations, with continued solid cash generation, cost reduction ahead of target and steady advancement of our growth strategies.
Quarterly bookings were down 9% year over year to $559 million and full-year bookings fell 14% to $2.32 billion. The annual decline was attributed to a $110 million impact from currency exchange effects, a $45 million decrease for original equipment, and a $65 million decrease in service bookings.
The stock traded down less than 0.1% on Wednesday, at $28.05 in a 52-week range of $8.35 to $28.55. The only thing that counts here is the completion of the merger with Komatsu America.