Joy Global ups quarterly profits

HIGHER service volumes, favourable manufacturing cost absorption and savings from Joy Global’s cost reduction program has helped the company increase its operating profit, before unusual items, for the three months to October 31.

Lou Caruana

Excluding unusual items in both periods, operating profit for the fourth quarter of fiscal 2014 totalled $US197 million, compared to $193 million in the fourth quarter of fiscal 2013, and return on sales was 17.3% for the fourth quarter of fiscal 2014, compared to 16.3% in the fourth quarter of fiscal 2013.

Global president and CEO Ted Doheny said while difficult commodity market conditions persisted across the year, the company remained focused on improving its cost position and responding to its customers’ requirements with superior service.

For the year, the company exceeded its cost reduction target and grew service bookings by 2%.

The company also raised its dividend for the first time in five years, repurchased 4.7 million shares and advanced its growth strategy by expanding into underground hard rock mining with the acquisition of Mining Technologies International Inc (MTI).

“We look forward to 2015 as an opportunity to further drive our strategies and expand our service business,” Doheny said.

“We remain committed to optimising our global manufacturing footprint and controlling costs. We are responding faster to our customers as lead times have been reduced. Achieving this balance is critical for our business and will make us more efficient, responsive, and competitive when market conditions improve.

“While 2015 will be another challenging year, we are confident in our ability to deliver results, generate cash and continue to allocate our capital resources in a disciplined manner that will create long-term value for our shareholders.”

Consolidated net sales for the fourth quarter totalled $1.1 billion, a 4% decrease versus the fourth quarter of last year. Original equipment sales decreased 20% while service sales increased 7% compared to the prior year.

Net sales for underground mining machinery decreased 12% in comparison to the fourth quarter of last year.

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