Joy Global Inc., the world’s fourth-largest mining equipment maker, said it doesn’t see an immediate recovery in orders after mining companies in the U.S. and China cut capital spending.
Earnings excluding restructuring costs in the year through October will be $5.90 to $6.50 a share, the Milwaukee-based company said today in a statement. The average of 21 analysts’ estimates compiled by Bloomberg was for $6.65. The company forecast sales of $4.9 billion to $5.2 billion, compared with the $5.17 billion average of 20 estimates.
“We are setting our plans for 2013 on the basis that current market conditions continue,” Chief Executive Officer Mike Sutherlin said in the statement. “Although there is upside potential in our markets, the timing is uncertain.”
Joy, which got 51 percent of its revenue from the U.S. in fiscal 2011, has suffered as domestic coal producers cut tens of millions of tons of output and shut mines this year after some power stations switched to cheaper natural gas. A slowdown in Chinese economic growth also curtailed coal production there.
Joy also said today that net income rose to $1.99 a share in the fiscal fourth quarter ended Oct. 26 from $1.62 a year earlier. Excluding expenses related to pensions, restructuring and acquisitions, earnings were $2.13, beating the $1.91 average of 21 estimates. Sales rose 19 percent to $1.59 billion.
The shares rose 4 percent to $60.17 in New York.
Mining capital expenditure may decline 10 percent to 15 percent in 2013 on lower spending on coal and iron ore, the company said. Commodity markets have stabilized and “now have potential for upside,” Sutherlin said.
“I don’t see multi-year significant declines in capex,” Sutherlin said during a conference call with analysts. “We really do believe capex is going to stabilize.”
The world’s largest mining-equipment manufacturers by revenue are Caterpillar Inc., Komatsu Ltd. and Sandvik AB, according to data compiled by Bloomberg.