Joy Global Seeks Mine-Related Acquisitions of Up to $400 Million, CEO Says
While the Milwaukee-based manufacturer wouldn’t hesitate to do larger, transformational acquisitions to expand its reach in surface and underground mining equipment, the limited availability of such businesses may lead Joy Global to medium- sized purchases, Sutherlin said today in a telephone interview.
“You are going to see us do more medium-sized $100, $200, $300 or $400 million acquisitions of products and services that fit nicely with our current product line and give us more critical mass in aftermarket” sales, Sutherlin said. The company is considering companies in China and evaluating the potential for acquisitions in India and Russia, he said.
Joy Global hasn’t received interest from suitors wanting to buy the company in recent years, and doesn’t expect any bids in the immediate future, Sutherlin said. Still, if a takeover proposal was made, the company “would never pass on an opportunity that has value for our shareholders,” he said.
The company today reported second-quarter profit that topped analysts’ estimates and boosted its full-year earnings and sales forecasts.
Profit was $1.15 a share in the three months through April 30, Joy Global said in a statement. The company was estimated to earn 77 cents a share, the average of 18 analysts surveyed by Bloomberg.
Full-year earnings will be $3.85 to $4 a share, compared with the prior forecast of $2.85 to $3.05, the company said. The average estimate in the Bloomberg survey was $3.11. Sales this year will be $3.3 billion to $3.4 billion, more than an earlier forecast of $2.8 billion to $3 billion, Joy Global said. Analysts, on average, estimated sales of $3.07 billion.