The results were largely disappointing for market analysts, with some estimates predicting revenue as high as $632.9 million.

But Joy president and CEO Mike Sutherlin said the company was “very satisfied” with its performance and that after a strong first quarter of 2006, it was fully expected that results would return to a normal seasonal pattern.

Sutherlin said a weak US coal market, an exceptionally strong first quarter in 2006 and capacity constraints from P&H Mining Equipment (as it commissions new machining centres and ramps up production) had a forecast impact on results.

“The first quarter continues to show strong results and supports our guidance for the full year,” Sutherlin said.

Looking forward, coal prices are tipped to be well above production costs, with future demand expected to outpace supply, particularly driven by increasing demand from China and other developing countries, the company said.

“The development of coal mining in China continues at a very strong pace. In response to the growing needs of the Chinese mining companies, Joy Global is focused on increasing organisational capabilities rapidly, while expanding both original equipment and aftermarket infrastructure,” the company said.

“The company’s aggressive investment timetable in China is to ensure its leadership position as this major mining market grows in significance.”