Joy Global Inc. (JOY), the largest maker of underground mining equipment, dropped in pre-market trading after it projected a decline in sales amid a slowdown in demand growth for metals and coal.
Joy declined 5.5 percent to $48.49 at 8:55 a.m. before the start of regular trading in New York.
While it maintained a sales forecast of $4.9 billion to $5 billion in the fiscal year ending Oct. 31, “the current outlook is unlikely to support annual revenue above $4 billion,” Milwaukee-based Joy said today in its third-quarter earnings statement. That trails the $4.59 billion average of 19 analysts’ estimates compiled by Bloomberg for the 2014 fiscal year.
“Conditions in our end markets are dominated by supply surplus and reduced demand growth for most commodities,” Chief Executive Officer Mike Sutherlin said in the statement. “The market will continue to be more challenging before it starts to improve.”
Third-quarter net income excluding one-time items was $1.70 a share, beating the $1.36 average of 20 estimates. Revenue dropped 4.9 percent to $1.32 billion, beating the $1.18 billion average estimate.
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