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Joy Earnings Fall on Coal Mining Weakness, But Forecasts Growth (JOY, ANR, PCX, BTU, RDC)
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Warm winter weather and low prices for natural gas have combined to weaken demand for coal, and as a result of that decline, underground mining machinery maker Joy Global Inc. (NYSE: JOY) reported quarterly earnings and revenues below estimates. Joy’s EPS came in at $1.33, compared with estimates of $1.$35 and revenue came in at $1.14 billion versus estimates of $1.16. Not a big miss, buy a miss nevertheless.
Miners Alpha Natural Resources Inc. (NYSE: ANR) and Patriot Coal Corp. (NYSE: PCX) have both recently closed high-cost shafts and Peabody Energy Co. (NYSE: BTU) is cutting production.
For the 2012 fiscal year, Joy forecast EPS of $7.40-$7.80 on revenue of $5.6-$5.8 billion. Last December the company forecast 2012 EPS of $7.00-$7.40 on revenue of $5.3-$5.5 billion.
The improved forecast is due to expected sales growth at Joy’s recently acquired Chinese subsidiary and growth at its LeTourneau from Rowan Companies Inc. (NYSE: RDC).
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