For the three months to January 29, 2010, Joy reported net sales of $US729 million, down 3% year-on-year.

Operating income was $118 million and net income was $76 million compared to $86 million last year.

"Orders were up from last year's run rate and translated to a positive book to bill. We continue to see strength in the international and emerging markets for all commodities, and the US thermal coal market is correcting faster than expected,” Joy chief executive officer Mike Sutherlin said.

“I was also pleased that we reduced our trade working capital during the first quarter as we continue to improve the efficiency of our processes. As a result, we are well positioned to take full advantage as the market recovery unfolds."

Overall new orders in the first quarter were up 22% to $808 million.

Underground original equipment orders were lower than a year ago, with strong order activity from China offset by decreases in the US and Australia.

Aftermarket orders for underground equipment increased 11% primarily due to increases in the US and South Africa. Joy said the improvement reflected increases in rebuilds as machines sold a couple of years ago reached their first rebuild interval.

The underground mining machinery business reported a sales decrease of 12% compared to a year ago, including the impact of currency.

Underground original equipment sales fell 18% and aftermarket sales declined by 8% as sales increases in Australia were offset by decreases in the US.

With improving commodity markets, Joy said this year it expected improving order rates.

Based on planning meetings with customers regarding machine specifications and delivery schedules, the company expects that the strongest equipment demand will come from copper, international coal and iron ore, and that orders will come predominantly from North and South America, Asia and Africa.

"We are encouraged by the improving fundamentals in the commodity markets and by our first-quarter order rate that confirms customers are beginning to act on these fundamentals," Sutherlin said.

"In addition, our ongoing work with customers supports our increased prospect list and indicates that expansion projects will continue to move to equipment orders during 2010.

“We expect any upside to orders to be mostly in original equipment and longer lead times will push their subsequent shipment into 2011 in most cases.”

Sutherlin said Joy would maintain its previous revenue guidance for fiscal 2010 of $2.8-3 billion.

“However, we continue to see the positive bottom-line impact of programs to improve process efficiencies and efforts to contain costs. We believe these will continue to favourably impact earnings and this allows us to raise the low end of our previous earnings expectations by 20c,” he said.

“We now expect earnings per fully diluted share for 2010 to be between $2.85 and $3.05.

“Finally, we continue to expect to approve capital expenditures of $100 million this year as we accelerate our investments early in this upcycle."