Joy Global Inc. (NYSE: JOY) reported first-quarter 2016 results before markets opened Thursday morning. The mining equipment maker reported an adjusted diluted per share loss of $0.23 on revenues of $526 million. In the same period a year ago, Joy Global reported earnings per share of $0.29 on revenue of $703.9 million. First-quarter results also compare to the Thomson Reuters consensus estimates for a net loss of $0.12 per share and $528.33 million in revenue.
On a GAAP basis, Joy posted a quarterly loss of $0.41 per share, compared with earnings of $0.31 in the first quarter of 2015.
CEO Ted Doheny said:
Our customers are taking unprecedented actions on their equipment fleets to conserve cash as commodity prices have weakened. This has adversely impacted our incoming order rate, particularly in the U.S. coal and copper markets. In the face of these difficult conditions, we continued to aggressively reduce costs and tightly control trade working capital and capital expenditures, resulting in another quarter of strong cash generation.
Bookings of underground mining equipment fell 3%, from $407 million a year ago to $281 million, and surface mining equipment sales fell 8% from $311 million to $286 million. Service bookings are down 18% and OEM bookings are down 33%. Backlog at the end of the quarter totaled $897 million, up from $873 million at the beginning of the year.
Joy Global expects fiscal 2016 revenues in a range of $2.4 billion to $2.6 billion and adjusted EPS of in a range of $0.10 to $0.50, with all the adjusted earnings coming in the second half of the year. The consensus fiscal year estimates called for revenues of $2.48 billion and EPS of $0.25 before this latest report.
Joy Global’s shares closed down 0.3% on Wednesday at $13.32 in a 52-week range of $8.35 to $44.75. Shares traded down nearly 4% Thursday morning at $12.80. Thomson Reuters had a consensus analyst price target of around $13.13 before the results were announced.
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