Aftermarket sales a winner for Bucyrus

WHILE underground mining sales were down for the March 2008 quarter, Wisconsin-based original equipment manufacturer Bucyrus managed to improve its margins with aftermarket business.
Aftermarket sales a winner for Bucyrus Aftermarket sales a winner for Bucyrus Aftermarket sales a winner for Bucyrus Aftermarket sales a winner for Bucyrus Aftermarket sales a winner for Bucyrus

Bucyrus roof supports.

Angie Tomlinson

For both its surface and underground businesses, Bucyrus reported net earnings of $US41 million for the quarter with strong sales of $516 million. Of that, underground equipment made up almost $233 million.

Underground mining sales were down on the previous two quarters, which the company attributed predominantly to the timing of new orders in 2007.

Gross margin on underground equipment was improved with higher margin aftermarket parts and services making up a larger percentage. Original equipment sales were $141 million, while aftermarket was $91 million.

New orders for underground mining equipment were $353 million for the quarter, and $124 million for aftermarket parts and services.

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