Strong Aussie demand helps reduce Joy Global underground sales drop

JOY Global’s quarterly net sales for underground mining machinery decreased 4% in comparison to the third quarter of last year despite strong sales from Australia.
Strong Aussie demand helps reduce Joy Global underground sales drop Strong Aussie demand helps reduce Joy Global underground sales drop Strong Aussie demand helps reduce Joy Global underground sales drop Strong Aussie demand helps reduce Joy Global underground sales drop Strong Aussie demand helps reduce Joy Global underground sales drop

Joy Mining president Ted Doheny.

Lou Caruana

Original equipment sales increased 2% compared to the prior year, with increases in Australia and Africa partially offset by decreases in all other regions.

Service sales decreased 6% compared to the prior year, with increases in Eurasia, China and Australia more than offset by decreases in all other regions with the most significant reduction in North America coal.

Net sales for underground mining machinery – which came in at $US453 million for the quarter -- were reduced by $39 million from the impact of foreign currency exchange compared to the prior year third quarter.

Joy Global president and CEO Ted Doheny said: “Our financial results for the third quarter reflect an end market environment that is one of the most challenging seen in decades.

“The further step down in commodity prices resulted in projects getting delayed and a lock down on cash from our customers which impacted our service business. We are accelerating our facility optimization plans and taking additional cost reduction actions to align with lower market demand.

“Tough quarter for us, but we were able to make some significant steps in driving our growth strategies while taking further cost actions to strengthen our business for the future.”

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