Increased sales of longwalls in China for Joy Global

A RECORD number of orders from China helped Joy Global Inc report second-quarter sales of $US896 million, only a 3% decrease quarter-on-quarter in difficult market conditions.
Increased sales of longwalls in China for Joy Global Increased sales of longwalls in China for Joy Global Increased sales of longwalls in China for Joy Global Increased sales of longwalls in China for Joy Global Increased sales of longwalls in China for Joy Global

Joy Global CEO Mike Sutherlin.

Lou Caruana

A rise in sales of complete longwall systems from Australia and China contributed significantly to the result as did improved order rates in North America.

Underground original equipment orders were up 52%, led by increased orders for longwall equipment, including complete longwall systems in China and Australia, and room and pillar equipment in the United States.

Original equipment orders in the surface business were up more than 40% in second quarter 2010, a result of orders for electric mining shovels received from customers in the North American coal and metals markets.

New orders in the second quarter of $1.05 billion were 43% higher than new incoming orders of $731 million received in the second quarter of 2009.

Current quarter original equipment orders were up 55%, while aftermarket orders increased 36%, over the second quarter of last year.

"Our results for the second quarter were again exceptional under current market conditions, and reflect improved fundamentals in our markets combined with our continued focus on strategy and execution," president and chief executive officer Mike Sutherlin said.

"Although all regions showed gains, it was especially encouraging to see order rate improvement return to North America, as these customers pursue strong global demand for metallurgical quality coal.

“China orders were a company record on strong expansion programs from continuing customers and from new customers as we broaden our customer base, and these orders reflect the benefits of our multi-dimensional strategy for China.

“Finally, our Operational Excellence programs continue to improve our processes and add to our bottom line performance."

Operating income was $181 million in the quarter compared with $188 million quarter-on-quarter, and net income in the current quarter was $120 million compared to $121 million quarter-on-quarter.

Aftermarket orders in the underground equipment business were up 41%, with increases across all regions.

Leading the way were significant increases in machine rebuild activity in all regions worldwide and parts orders from China.

Surface business aftermarket orders were also strong, increasing by 29% in the quarter compared to the prior year quarter. Aftermarket orders increased throughout all regions, but most significantly in Canada.

Most read Archive

topics

loader

Most read Archive