Joy Global Inc. (NYSE: JOY), a worldwide leader in
high-productivity mining solutions, today reported second quarter fiscal
2014 results.
Second Quarter Summary
-
Bookings $1.0 billion, down 7 percent from a year ago
-
Service bookings growth in the quarter 8% over 2013
-
Net sales $930 million, down 32 percent from a year ago
-
Earnings per diluted share $0.73, compared to $1.69 a year ago.
Adjusted earnings per diluted share $0.76, compared to $1.73 a year ago
-
Cash provided by continuing operations $142 million, compared to $1
million a year ago
-
Closed MTI underground hard rock acquisition of certain assets on May
30, 2014
Second Quarter Operating Results
"The Joy Global team continues to execute well despite significant
market headwinds," said Ted Doheny, President and Chief Executive
Officer. "The continued stabilization of our service business, strong
cash generation and a multi-shovel order for the Canadian oil sands were
highlights in the quarter," said Doheny. “Additionally, the recent
closing of the Mining Technologies International Inc. transaction will
add to our underground hard rock mining growth prospects. As a result,
we are pleased with our second quarter performance and the steps we have
taken to advance the execution of our business strategy."
|
Bookings - (in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended
|
|
|
|
|
|
|
|
|
|
May 2,
|
|
April 26,
|
|
%
|
|
|
|
|
|
|
2014
|
|
2013
|
|
Change
|
|
Segment:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Underground Mining Machinery
|
|
|
|
|
$
|
488.0
|
|
|
$
|
711.6
|
|
|
(31.4
|
)%
|
|
Surface Mining Equipment
|
|
|
|
|
600.5
|
|
|
446.9
|
|
|
34.4
|
%
|
|
Eliminations
|
|
|
|
|
(40.9
|
)
|
|
(29.7
|
)
|
|
|
|
|
Total Bookings by Segment
|
|
|
|
|
$
|
1,047.6
|
|
|
$
|
1,128.8
|
|
|
(7.2
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Product:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service
|
|
|
|
|
$
|
697.0
|
|
|
$
|
648.0
|
|
|
7.6
|
%
|
|
Original Equipment
|
|
|
|
|
350.6
|
|
|
480.8
|
|
|
(27.1
|
)%
|
|
Total Bookings by Product
|
|
|
|
|
$
|
1,047.6
|
|
|
$
|
1,128.8
|
|
|
(7.2
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated bookings in the second quarter totaled $1,048 million, a
decrease of 7 percent versus the second quarter of last year. Original
equipment orders decreased 27 percent while service orders increased 8
percent compared to the prior year. Current quarter bookings were
reduced by $2 million from the impact of foreign exchange movements
versus the year ago period, a $13 million increase for original
equipment and a $15 million decrease for service bookings. When
adjusting for foreign exchange, orders were down 7 percent compared to
the second quarter of last year, with original equipment orders down 30
percent and service orders up 10 percent.
Bookings for underground mining machinery decreased 31 percent in
comparison to the second quarter of last year. Original equipment orders
decreased 60 percent compared to the prior year, largely due to a
longwall system order received into the U.S. in the prior year. Original
equipment orders declined in all regions except Eurasia. Service orders
increased 2 percent compared to the prior year, led by stronger rebuild
activity in all regions. Orders for underground mining machinery were
increased by $6 million from the impact of foreign exchange compared to
the second quarter of last year.
Bookings for surface mining equipment increased 34 percent in comparison
to the second quarter of last year. Original equipment orders increased
102 percent compared to the prior year, largely due to a multiple shovel
order for a greenfield expansion project in the Canadian oil sands with
deliveries in 2016. Original equipment orders increased in all regions
except Africa. Service orders increased 13 percent compared to the prior
year, with increases in North America, South America and Eurasia that
were partially offset by reductions in Australia, China and Africa.
Orders for surface mining equipment were reduced by $8 million from the
impact of foreign exchange compared to the second quarter of last year.
Backlog at the end of the second quarter was $1.6 billion, compared to
$1.5 billion at the beginning of the year.
|
Net Sales - (in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended
|
|
|
|
|
|
|
|
|
|
May 2,
|
|
April 26,
|
|
%
|
|
|
|
|
|
|
2014
|
|
2013
|
|
Change
|
|
Underground Mining Machinery
|
|
|
|
|
$
|
517.9
|
|
|
$
|
681.9
|
|
|
(24.1
|
)%
|
|
Surface Mining Equipment
|
|
|
|
|
443.6
|
|
|
712.8
|
|
|
(37.8
|
)%
|
|
Eliminations
|
|
|
|
|
(31.8
|
)
|
|
(34.3
|
)
|
|
|
|
|
Total Net Sales
|
|
|
|
|
$
|
929.7
|
|
|
$
|
1,360.4
|
|
|
(31.7
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated net sales totaled $930 million, a 32 percent decrease
versus the second quarter of last year. Original equipment sales
decreased 58 percent and service sales decreased 8 percent compared to
the prior year. Current quarter net sales were reduced by $35 million
from the impact of foreign exchange versus the year ago period. When
adjusting for foreign exchange, sales were down 29 percent compared to
the second quarter of last year.
Net sales for underground mining machinery decreased 24 percent in
comparison to the second quarter of last year. Original equipment sales
decreased 47 percent compared to the prior year, with decreases in all
regions. Service sales decreased 5 percent compared to the prior year,
with a decline in China partially offset by increases in all other
regions.
Net sales for surface mining equipment decreased 38 percent in
comparison to the second quarter of last year. Original equipment sales
decreased 66 percent compared to the prior year, with declines in all
regions. Service sales decreased 11 percent compared to the prior year,
with declines in all regions.
|
Operating Profit - (in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended
|
|
|
|
|
|
|
|
|
|
|
|
|
May 2,
2014
|
|
April 26,
2013
|
|
Return on Sales
|
|
|
|
|
|
|
|
|
2014
|
|
2013
|
|
Underground Mining Machinery
|
|
|
|
|
$
|
71.3
|
|
|
$
|
142.9
|
|
|
13.8
|
%
|
|
21.0
|
%
|
|
Surface Mining Equipment
|
|
|
|
|
83.5
|
|
|
165.6
|
|
|
18.8
|
%
|
|
23.2
|
%
|
|
Corporate Expenses
|
|
|
|
|
(13.6
|
)
|
|
(16.5
|
)
|
|
|
|
|
|
|
|
Eliminations
|
|
|
|
|
(10.2
|
)
|
|
(7.6
|
)
|
|
|
|
|
|
|
|
Subtotal, Before Unusual Items
|
|
|
|
|
131.0
|
|
|
284.4
|
|
|
14.1
|
%
|
|
20.9
|
%
|
|
Restructuring charges
|
|
|
|
|
(4.7
|
)
|
|
(5.6
|
)
|
|
|
|
|
|
|
|
Acquisition costs
|
|
|
|
|
(0.6
|
)
|
|
(0.2
|
)
|
|
|
|
|
|
|
|
Total Operating Profit
|
|
|
|
|
$
|
125.7
|
|
|
$
|
278.6
|
|
|
13.5
|
%
|
|
20.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit for the second quarter of fiscal 2014 totaled $126
million, compared to $279 million in the second quarter of fiscal 2013.
Excluding the unusual items listed in the table above, operating profit
for the second quarter of fiscal 2014 totaled $131 million, compared to
$284 million in the second quarter of fiscal 2013, and return on sales
before unusual items was 14.1 percent for the second quarter of fiscal
2014, compared to 20.9 percent in the second quarter of fiscal 2013. The
decrease in operating profit, before unusual items, was due to lower
sales volumes, unfavorable product mix and lower manufacturing cost
absorption.
|
Earnings Per Share Reconciliation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended
|
|
|
|
|
May 2, 2014
|
|
April 26, 2013
|
|
|
|
|
Dollars
|
|
Fully
|
|
Dollars
|
|
Fully
|
|
|
|
|
in millions
|
|
Diluted EPS
|
|
in millions
|
|
Diluted EPS
|
|
Operating profit
|
|
|
$
|
125.7
|
|
|
|
|
|
$
|
278.6
|
|
|
|
|
Interest expense, net
|
|
|
13.8
|
|
|
|
|
|
15.2
|
|
|
|
|
Income tax expense
|
|
|
37.9
|
|
|
|
|
|
81.6
|
|
|
|
|
Income from continuing operations
|
|
|
74.0
|
|
|
$
|
0.73
|
|
|
181.8
|
|
|
$
|
1.69
|
|
Add:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring charges, net of tax
|
|
|
3.1
|
|
|
0.03
|
|
|
3.9
|
|
|
0.04
|
|
Acquisition costs, net of tax
|
|
|
0.4
|
|
|
—
|
|
|
0.1
|
|
|
—
|
|
Deduct:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net discrete tax benefits
|
|
|
0.6
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Income from continuing operations before unusual items and
acquisition activities
|
|
|
$
|
76.9
|
|
|
$
|
0.76
|
|
|
$
|
185.8
|
|
|
$
|
1.73
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fully diluted earnings per share for the second quarter of fiscal 2014
totaled $0.73, compared to $1.69 in the second quarter of fiscal 2013.
Excluding unusual items, fully diluted earnings per share for the second
quarter of fiscal 2014 totaled $0.76, compared to $1.73 in the second
quarter of fiscal 2013.
The effective income tax rate was 33.9 percent for the second quarter of
fiscal 2014, compared to 31.0 percent in the second quarter of fiscal
2013. The increase in the effective tax rate for the quarter was
primarily attributable to a change in geographical mix of projected
earnings and a change in the net operating losses of certain foreign
subsidiaries without a currently recognizable tax benefit.
Cash provided by continuing operations was $142 million for the second
quarter of fiscal 2014, compared to $1 million provided by continuing
operations in the second quarter of fiscal 2013. The increase in cash
provided by continuing operations during the second quarter was
primarily due to collection of accounts receivable, reduced pension
contributions and timing of tax payments, partially offset by lower
earnings.
Capital expenditures were $18 million in the second quarter of fiscal
2014, down from $32 million in the second quarter of fiscal 2013.
During the second quarter, the company repurchased approximately 138
thousand shares of its common stock for $7 million. Since inception of
its share repurchase program in the fourth quarter of fiscal 2013, the
company has repurchased 6.5 million shares of its common stock for $344
million, leaving $656 million available under the current Board
authorization.
Market Outlook
Economic and commodity indicators presented a mixed picture during the
first calendar quarter of 2014. Improving economic activity in the
Eurozone was met by sluggish growth in the U.S. that was impacted by
unusually severe weather. At the same time, Chinese economic activity
continued to slow, but showed signs of stabilizing at a 7.5 percent
growth rate. Despite the slowdown in China, global growth is trending at
the second strongest level in two years and is expected to reach 3.5
percent in 2014. While improving economic conditions should drive
increased demand, commodities remain oversupplied with prices in some
cases at multi-year lows that continue to delay capital decisions.
Thermal coal market fundamentals in the US strengthened through April as
power plant inventories reached their lowest levels since 2006 and are
approaching the 100 million ton level. An extremely cold winter season
along with natural gas prices averaging $4.97/mmBtu through May, have
driven a nearly 20 million ton increase in coal burn in the first
calendar quarter. While production is flat year-to-date, the need to
replenish depleted inventories should drive production increases of 35
to 45 million tons during the second half of the year with much of this
increase coming from the Illinois and Powder River Basins.
Seaborne thermal coal markets remain challenged as supply is outpacing
demand growth. While demand has remained strong from China, India and
Japan, limited supply reductions have driven spot pricing for seaborne
thermal coal to the mid-$70’s per tonne level and resulted in the annual
thermal coal benchmark being set at $81.80 per tonne, down nearly 14
percent from a year-ago. Despite improving economic conditions and the
expected 3 percent increase in seaborne demand in 2014, continuing
supply conditions are expected to leave prices range bound between $75
and $85 per tonne.
Chinese coal market conditions remained challenged during the first
calendar quarter of 2014 as a depressed pricing environment weighed on
many large producers. While China is aiming to cut coal’s share of
energy use to 65 percent in 2014, coal demand is still expected to grow
at 3 percent, however, there appears to be limited upside for pricing
improvement as seaborne coal prices continue to pressure domestic China
producers.
Facing similar pressures, met coal markets drifted lower during the
first calendar quarter of 2014 with the recent $120 per tonne quarterly
contract representing the weakest pricing environment since 2009.
Despite steel production increasing nearly 4 percent through April,
limited supply rationalization has driven met coal prices lower with
current spot prices trending around $115 per tonne. Recently announced
supply curtailments appear to indicate that the early stages of supply
rationalization may have begun.
Again, notwithstanding the global steel production increase in the first
quarter, iron ore prices have also declined and averaged $111 per tonne
over the last two months largely owed to supply increases hitting the
market. The slope of the seaborne iron ore cost curve provides support
at the $100 to $110 level and should support prices for the remainder of
the year given the expectation for global steel demand to increase above
3 percent in 2014.
After seeing an estimated market deficit of 270,000 tonnes in 2013, the
global refined copper market is expected to move into surplus for the
first time in four years with a projected 2014 surplus of 400,000
tonnes. The expected surpluses are a result of production increases
hitting the market after several years of development. However, global
copper inventories remain 27 percent below the March 2013 peak and
expectations are that copper prices should average $3.10 per pound
during 2014. Copper prices have held steady over the last several months
as supply and demand conditions have remained relatively balanced.
The economics of oil sands remain strong as oil prices have averaged
over $90 per barrel since 2010. Sustained prices at these levels
continue to stimulate investment in the oil sands region given the
average cost of production in the $50 to $80 range.
While global economic conditions are improving, commodity supply
rationalization has yet to meaningfully materialize. As such, the
backdrop of weak commodity prices continues to influence mining capital
expenditure decisions. There have been some signs of stabilization,
however, the current market landscape remains difficult and continues to
present near-term headwinds to the mining industry.
Company Outlook
“Challenging market conditions continue to impact our business despite
incremental positive signs on the horizon," continued Doheny. "When
looking at seaborne coal markets, current prices are pressuring over 30
percent and 50 percent of thermal and met coal producers, respectively.
The recent decline in iron ore prices has also begun to pressure the
upper 20 percent of the global cost curve, which is primarily high-cost
producers in China. Copper continues to have the strongest fundamentals
of the major commodities we serve, with nearly 95 percent of global
producers recognizing positive cash generation.
“While U.S. coal market fundamentals have improved, there is generally a
lagged effect between that improvement and our bookings and this appears
to be playing out now. Our company-wide service bookings increased for
the second consecutive quarter versus the year ago period, however, our
underground North American region was relatively flat from last year.
“One area we are seeing growth is in the oil sands market. We received a
large order this quarter for several electric mining shovels which will
add to our fleet currently working in the Canadian oil sands region. The
Canadian oil sands represent the largest unconventional source of oil
production over the next 20 years and we remain committed to the region
and to providing world-class service to our fleet of equipment operating
there.
“As we continue to navigate the trough of this cycle, we remain
committed to controlling costs and optimizing our global manufacturing
footprint. During the quarter, we executed well on our planned 2014
restructuring actions and we remain focused on balancing further actions
with market conditions.
"As we look at 2014 in context of our performance during the first half
of the year, we are reconfirming our guidance of revenues between $3.6
billion and $3.8 billion with earnings per fully diluted share,
excluding restructuring and unusual items, in the range of $3.10 to
$3.50. We expect the second half performance to be weighted towards the
end of the year, rather than spread equally among the remaining
quarters. We continue to project cash from continuing operations for the
fiscal year, excluding discretionary pension contributions, of
approximately 15 percent of sales.
“We continue to be diligent in looking for ways to maximize returns for
shareholders while executing on our overall growth strategies. One of
these strategies is the expansion of our offerings in the underground
hard rock mining market. We recently closed on the acquisition of
certain assets of Mining Technologies International Inc. This represents
a great opportunity for us to expand our product portfolio in
underground hard rock mining and leverage our global service
capabilities in bringing significant value to our hard rock mining
customers and our shareholders.
“Overall, we remain focused on delivering innovative solutions through
world-class products and direct service to our customers that help make
mining safer and lower their total lifecycle costs.”
Quarterly Conference Call
Management will host a quarterly conference call to discuss the
Company's second quarter results at 11:00 a.m. EDT on June 5, 2014.
Interested parties can listen to the call by dialing 888-504-7966 in the
United States or 719-325-2437 outside of the United States, access code
#7285398, at least 15 minutes prior to the 11:00 a.m. EDT start time of
the call. A rebroadcast of the call will be available until the close of
business on June 26, 2014 by dialing 888-203-1112 or 719-457-0820,
access code #7285398.
Alternatively, interested parties can listen to a live webcast of the
call on the Joy Global Inc. website at http://investors.joyglobal.com/events.cfm.
To listen, please register and download audio software on the site at
least 15 minutes prior to the start of the call. A replay of the webcast
will be available until the close of business on July 7, 2014.
About Joy Global Inc.
Joy Global Inc. is a worldwide leader in mining equipment and services
for surface and underground mining.
Forward-Looking Statements
This press release contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995. Terms
such as “anticipate,” “believe,” “could,” “estimate,” “expect,”
“forecast,” “indicate,” “intend,” “may be,” “objective,” “plan,”
“potential” “predict,” “should,” “will be,” and similar expressions are
intended to identify forward-looking statements. The forward-looking
statements in this press release are based on our current expectations
and are made only as of the date of this press release. In addition,
certain market outlook information and other market statistical data
contained herein is based on third party sources that we cannot
independently verify, but that we believe to be reliable. We undertake
no obligation to update forward-looking statements to reflect new
information. We cannot assure you the projected results or events will
be achieved. Because forward-looking statements involve risks and
uncertainties, they are subject to change at any time. Such risks and
uncertainties, many of which are beyond our control, include, but are
not limited to: (i) risks of international operations, including
currency fluctuations, (ii) risks associated with acquisitions, (iii)
risks associated with indebtedness, (iv) risks associated with the
cyclical nature of our business, (v) risks associated with the
international and U.S. coal and copper commodity markets, (vi) risks
associated with access to major purchased items, such as steel,
castings, forgings and bearings, and (vii) risks associated with labor
markets and other risks, uncertainties and cautionary factors set forth
in our public filings with the Securities and Exchange Commission.
JOY-F
|
|
|
|
|
JOY GLOBAL INC.
|
|
SUMMARY OF CONSOLIDATED STATEMENTS OF INCOME
|
|
(Unaudited)
|
|
(In thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
Quarter Ended
|
|
Six Months Ended
|
|
|
|
May 2,
2014
|
|
April 26,
2013
|
|
May 2,
2014
|
|
April 26,
2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
|
929,730
|
|
|
$
|
1,360,435
|
|
|
$
|
1,769,042
|
|
|
$
|
2,510,312
|
|
|
Costs and expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of sales
|
|
651,592
|
|
|
909,179
|
|
|
1,255,770
|
|
|
1,682,328
|
|
|
Product development, selling and administrative expenses
|
|
154,534
|
|
|
172,953
|
|
|
307,563
|
|
|
330,234
|
|
|
Other income
|
|
(2,138
|
)
|
|
(330
|
)
|
|
(5,278
|
)
|
|
(2,035
|
)
|
|
Operating income
|
|
125,742
|
|
|
278,633
|
|
|
210,987
|
|
|
499,785
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense, net
|
|
13,848
|
|
|
15,185
|
|
|
27,668
|
|
|
30,338
|
|
|
Income from continuing operations before income taxes
|
|
111,894
|
|
|
263,448
|
|
|
183,319
|
|
|
469,447
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for income taxes
|
|
37,943
|
|
|
81,669
|
|
|
60,507
|
|
|
145,529
|
|
|
Income from continuing operations
|
|
73,951
|
|
|
181,779
|
|
|
122,812
|
|
|
323,918
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from discontinued operations, net of income taxes
|
|
—
|
|
|
(223
|
)
|
|
—
|
|
|
(225
|
)
|
|
Net income
|
|
$
|
73,951
|
|
|
$
|
181,556
|
|
|
$
|
122,812
|
|
|
$
|
323,693
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing operations
|
|
$
|
0.74
|
|
|
$
|
1.71
|
|
|
$
|
1.22
|
|
|
$
|
3.05
|
|
|
Discontinued operations
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Net income
|
|
$
|
0.74
|
|
|
$
|
1.71
|
|
|
$
|
1.22
|
|
|
$
|
3.05
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing operations
|
|
$
|
0.73
|
|
|
$
|
1.69
|
|
|
$
|
1.20
|
|
|
$
|
3.02
|
|
|
Discontinued operations
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Net income
|
|
$
|
0.73
|
|
|
$
|
1.69
|
|
|
$
|
1.20
|
|
|
$
|
3.02
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends per share
|
|
$
|
0.175
|
|
|
$
|
0.175
|
|
|
$
|
0.35
|
|
|
$
|
0.35
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
100,346
|
|
|
106,426
|
|
|
101,071
|
|
|
106,334
|
|
|
Diluted
|
|
101,203
|
|
|
107,413
|
|
|
101,935
|
|
|
107,325
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note - For complete information, including footnote disclosures, please
refer to the Company's Form 10-Q filing with the SEC.
|
|
|
|
|
JOY GLOBAL INC.
|
|
SUMMARY CONSOLIDATED BALANCE SHEETS
|
|
(Unaudited)
|
|
(In thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
May 2,
|
|
October 25,
|
|
|
|
|
|
2014
|
|
2013
|
|
ASSETS
|
|
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
|
$
|
385,790
|
|
|
$
|
405,709
|
|
Accounts receivable, net
|
|
|
|
917,502
|
|
|
1,083,663
|
|
Inventories
|
|
|
|
1,128,891
|
|
|
1,139,744
|
|
Other current assets
|
|
|
|
201,838
|
|
|
193,328
|
|
Total current assets
|
|
|
|
2,634,021
|
|
|
2,822,444
|
|
|
|
|
|
|
|
|
|
|
Property, plant and equipment, net
|
|
|
|
893,649
|
|
|
912,642
|
|
Other intangible assets, net
|
|
|
|
322,701
|
|
|
331,812
|
|
Goodwill
|
|
|
|
1,492,689
|
|
|
1,480,519
|
|
Deferred income taxes
|
|
|
|
39,746
|
|
|
41,532
|
|
Other assets
|
|
|
|
194,928
|
|
|
200,633
|
|
Total assets
|
|
|
|
$
|
5,577,734
|
|
|
$
|
5,789,582
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
|
|
Short-term notes payable, including current portion of long term
obligations
|
|
|
|
$
|
58,089
|
|
|
$
|
58,669
|
|
Trade accounts payable
|
|
|
|
335,319
|
|
|
388,119
|
|
Employee compensation and benefits
|
|
|
|
111,713
|
|
|
130,555
|
|
Advance payments and progress billings
|
|
|
|
403,518
|
|
|
399,768
|
|
Accrued warranties
|
|
|
|
73,602
|
|
|
85,732
|
|
Other accrued liabilities
|
|
|
|
225,953
|
|
|
286,063
|
|
Current liabilities of discontinued operations
|
|
|
|
11,684
|
|
|
11,684
|
|
Total current liabilities
|
|
|
|
1,219,878
|
|
|
1,360,590
|
|
|
|
|
|
|
|
|
|
|
Long-term obligations
|
|
|
|
1,231,572
|
|
|
1,256,927
|
|
|
|
|
|
|
|
|
|
|
Liability for postretirement benefits
|
|
|
|
19,944
|
|
|
20,723
|
|
Accrued pension costs
|
|
|
|
139,196
|
|
|
149,805
|
|
Other non-current liabilities
|
|
|
|
152,328
|
|
|
143,168
|
|
|
|
|
|
|
|
|
|
|
Shareholders' equity
|
|
|
|
2,814,816
|
|
|
2,858,369
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and shareholders' equity
|
|
|
|
$
|
5,577,734
|
|
|
$
|
5,789,582
|
|
|
|
|
|
|
|
|
|
|
|
Note - For complete information, including footnote disclosures, please
refer to the Company's Form 10-Q filing with the SEC.
|
|
|
|
|
JOY GLOBAL INC.
|
|
SUMMARY OF CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
(Unaudited)
|
|
(In thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended
|
|
Six Months Ended
|
|
|
|
|
|
May 2,
|
|
April 26,
|
|
May 2,
|
|
April 26,
|
|
|
|
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
Operating Activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
|
$
|
73,951
|
|
|
$
|
181,556
|
|
|
$
|
122,812
|
|
|
$
|
323,693
|
|
|
Loss from discontinued operations
|
|
|
|
—
|
|
|
223
|
|
|
—
|
|
|
225
|
|
|
Depreciation and amortization
|
|
|
|
32,071
|
|
|
28,778
|
|
|
64,837
|
|
|
48,873
|
|
|
Other adjustments to continuing operations, net
|
|
|
|
4,254
|
|
|
(47,649
|
)
|
|
12,742
|
|
|
(82,851
|
)
|
|
Changes in working capital items attributed to continuing operations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts receivable, net
|
|
|
|
50,098
|
|
|
(92,700
|
)
|
|
166,177
|
|
|
7,705
|
|
|
Inventories
|
|
|
|
13,869
|
|
|
54,235
|
|
|
(15,577
|
)
|
|
24,908
|
|
|
Trade accounts payable
|
|
|
|
50,125
|
|
|
42,478
|
|
|
(45,992
|
)
|
|
(14,239
|
)
|
|
Advance payments and progress billings
|
|
|
|
(81,271
|
)
|
|
(117,969
|
)
|
|
9,182
|
|
|
(74,157
|
)
|
|
Other working capital items
|
|
|
|
(1,261
|
)
|
|
(47,742
|
)
|
|
(107,506
|
)
|
|
(140,882
|
)
|
|
Net cash provided by operating activities of continuing operations
|
|
|
|
141,836
|
|
|
1,210
|
|
|
206,675
|
|
|
93,275
|
|
|
Net cash used by operating activities of discontinued operations
|
|
|
|
(182
|
)
|
|
(801
|
)
|
|
(115
|
)
|
|
(2,372
|
)
|
|
Net cash provided by operating activities
|
|
|
|
141,654
|
|
|
409
|
|
|
206,560
|
|
|
90,903
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investing Activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property, plant, and equipment acquired
|
|
|
|
(17,649
|
)
|
|
(32,413
|
)
|
|
(44,304
|
)
|
|
(87,001
|
)
|
|
Other investing activities, net
|
|
|
|
2,079
|
|
|
(729
|
)
|
|
4,139
|
|
|
2,117
|
|
|
Net cash used by investing activities
|
|
|
|
(15,570
|
)
|
|
(33,142
|
)
|
|
(40,165
|
)
|
|
(84,884
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financing Activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common stock issued
|
|
|
|
4,596
|
|
|
2,215
|
|
|
6,581
|
|
|
5,227
|
|
|
Dividends paid
|
|
|
|
(17,524
|
)
|
|
(18,588
|
)
|
|
(35,374
|
)
|
|
(37,130
|
)
|
|
Treasury stock purchased
|
|
|
|
(7,468
|
)
|
|
—
|
|
|
(129,504
|
)
|
|
—
|
|
|
Other financing activities, net
|
|
|
|
(12,651
|
)
|
|
14,597
|
|
|
(26,694
|
)
|
|
(1,083
|
)
|
|
Net cash used by financing activities
|
|
|
|
(33,047
|
)
|
|
(1,776
|
)
|
|
(184,991
|
)
|
|
(32,986
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect of Exchange Rate Changes on Cash and Cash Equivalents
|
|
|
|
1,854
|
|
|
(511
|
)
|
|
(1,323
|
)
|
|
(2,031
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Increase (Decrease) in Cash and Cash Equivalents
|
|
|
|
94,891
|
|
|
(35,020
|
)
|
|
(19,919
|
)
|
|
(28,998
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and Cash Equivalents at the Beginning of Period
|
|
|
|
290,899
|
|
|
269,895
|
|
|
405,709
|
|
|
263,873
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and Cash Equivalents at the End of Period
|
|
|
|
$
|
385,790
|
|
|
$
|
234,875
|
|
|
$
|
385,790
|
|
|
$
|
234,875
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental cash flow information:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest paid
|
|
|
|
$
|
15,485
|
|
|
$
|
16,045
|
|
|
$
|
31,336
|
|
|
$
|
32,231
|
|
|
Income taxes paid
|
|
|
|
43,743
|
|
|
114,653
|
|
|
74,511
|
|
|
170,693
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization by segment:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Underground Mining Machinery
|
|
|
|
$
|
17,478
|
|
|
$
|
16,221
|
|
|
$
|
36,212
|
|
|
$
|
22,763
|
|
|
Surface Mining Equipment
|
|
|
|
13,917
|
|
|
11,837
|
|
|
27,209
|
|
|
24,679
|
|
|
Corporate
|
|
|
|
676
|
|
|
720
|
|
|
1,416
|
|
|
1,431
|
|
|
Total depreciation and amortization
|
|
|
|
$
|
32,071
|
|
|
$
|
28,778
|
|
|
$
|
64,837
|
|
|
$
|
48,873
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note - For complete information, including footnote disclosures, please
refer to the Company's Form 10-Q filing with the SEC.
|
|
|
|
|
JOY GLOBAL INC.
|
|
SUPPLEMENTAL FINANCIAL DATA
|
|
(Unaudited)
|
|
(In thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended
|
|
|
|
|
|
|
|
|
|
|
|
May 2,
2014
|
|
April 26,
2013
|
|
Change
|
|
Net Sales By Segment:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Underground Mining Machinery
|
|
|
|
$
|
517,878
|
|
|
$
|
681,914
|
|
|
$
|
(164,036
|
)
|
|
(24.1
|
)%
|
|
Surface Mining Equipment
|
|
|
|
443,625
|
|
|
712,796
|
|
|
(269,171
|
)
|
|
(37.8
|
)%
|
|
Eliminations
|
|
|
|
(31,773
|
)
|
|
(34,275
|
)
|
|
2,502
|
|
|
|
|
|
Total Sales By Segment
|
|
|
|
$
|
929,730
|
|
|
$
|
1,360,435
|
|
|
$
|
(430,705
|
)
|
|
(31.7
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Sales By Product Stream:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service
|
|
|
|
$
|
656,104
|
|
|
$
|
716,158
|
|
|
$
|
(60,054
|
)
|
|
(8.4
|
)%
|
|
Original Equipment
|
|
|
|
273,626
|
|
|
644,277
|
|
|
(370,651
|
)
|
|
(57.5
|
)%
|
|
Total Sales By Product Stream
|
|
|
|
$
|
929,730
|
|
|
$
|
1,360,435
|
|
|
$
|
(430,705
|
)
|
|
(31.7
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Sales By Geography:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
United States
|
|
|
|
$
|
357,890
|
|
|
$
|
585,863
|
|
|
$
|
(227,973
|
)
|
|
(38.9
|
)%
|
|
Rest of World
|
|
|
|
571,840
|
|
|
774,572
|
|
|
(202,732
|
)
|
|
(26.2
|
)%
|
|
Total Sales By Geography
|
|
|
|
$
|
929,730
|
|
|
$
|
1,360,435
|
|
|
$
|
(430,705
|
)
|
|
(31.7
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income By Segment:
|
|
|
|
|
|
|
|
|
|
% of Net Sales
|
|
Underground Mining Machinery
|
|
|
|
$
|
67,532
|
|
|
$
|
137,222
|
|
|
13.0
|
%
|
|
20.1
|
%
|
|
Surface Mining Equipment
|
|
|
|
82,613
|
|
|
165,643
|
|
|
18.6
|
%
|
|
23.2
|
%
|
|
Corporate
|
|
|
|
(14,203
|
)
|
|
(16,647
|
)
|
|
|
|
|
|
|
|
Eliminations
|
|
|
|
(10,200
|
)
|
|
(7,585
|
)
|
|
|
|
|
|
|
|
Total Operating Income
|
|
|
|
$
|
125,742
|
|
|
$
|
278,633
|
|
|
13.5
|
%
|
|
20.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
|
|
|
|
|
|
|
|
|
|
|
|
May 2,
2014
|
|
April 26,
2013
|
|
Change
|
|
Net Sales By Segment:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Underground Mining Machinery
|
|
|
|
$
|
995,341
|
|
|
$
|
1,272,024
|
|
|
$
|
(276,683
|
)
|
|
(21.8
|
)%
|
|
Surface Mining Equipment
|
|
|
|
844,321
|
|
|
1,318,279
|
|
|
(473,958
|
)
|
|
(36.0
|
)%
|
|
Eliminations
|
|
|
|
(70,620
|
)
|
|
(79,991
|
)
|
|
9,371
|
|
|
|
|
|
Total Sales By Segment
|
|
|
|
$
|
1,769,042
|
|
|
$
|
2,510,312
|
|
|
$
|
(741,270
|
)
|
|
(29.5
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Sales By Product Stream:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service
|
|
|
|
$
|
1,228,977
|
|
|
$
|
1,342,041
|
|
|
$
|
(113,064
|
)
|
|
(8.4
|
)%
|
|
Original Equipment
|
|
|
|
540,065
|
|
|
1,168,271
|
|
|
(628,206
|
)
|
|
(53.8
|
)%
|
|
Total Sales By Product Stream
|
|
|
|
$
|
1,769,042
|
|
|
$
|
2,510,312
|
|
|
$
|
(741,270
|
)
|
|
(29.5
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Sales By Geography:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
United States
|
|
|
|
$
|
666,801
|
|
|
$
|
1,013,255
|
|
|
$
|
(346,454
|
)
|
|
(34.2
|
)%
|
|
Rest of World
|
|
|
|
1,102,241
|
|
|
1,497,057
|
|
|
(394,816
|
)
|
|
(26.4
|
)%
|
|
Total Sales By Geography
|
|
|
|
$
|
1,769,042
|
|
|
$
|
2,510,312
|
|
|
$
|
(741,270
|
)
|
|
(29.5
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income By Segment:
|
|
|
|
|
|
|
|
|
|
% of Net Sales
|
|
Underground Mining Machinery
|
|
|
|
$
|
130,138
|
|
|
$
|
249,105
|
|
|
13.1
|
%
|
|
19.6
|
%
|
|
Surface Mining Equipment
|
|
|
|
128,765
|
|
|
301,323
|
|
|
15.3
|
%
|
|
22.9
|
%
|
|
Corporate
|
|
|
|
(28,425
|
)
|
|
(29,479
|
)
|
|
|
|
|
|
|
|
Eliminations
|
|
|
|
(19,491
|
)
|
|
(21,164
|
)
|
|
|
|
|
|
|
|
Total Operating Income
|
|
|
|
$
|
210,987
|
|
|
$
|
499,785
|
|
|
11.9
|
%
|
|
19.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note - For complete information, including footnote disclosures, please
refer to the Company's Form 10-Q filing with the SEC.
|
|
|
|
|
JOY GLOBAL INC.
|
|
SUPPLEMENTAL FINANCIAL DATA
|
|
(Unaudited)
|
|
(In thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter Ended
|
|
|
|
|
|
|
|
|
|
|
|
May 2,
2014
|
|
April 26,
2013
|
|
Change
|
|
Bookings By Segment:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Underground Mining Machinery
|
|
|
|
$
|
488,052
|
|
|
$
|
711,660
|
|
|
$
|
(223,608
|
)
|
|
(31.4
|
)%
|
|
Surface Mining Equipment
|
|
|
|
600,453
|
|
|
446,873
|
|
|
153,580
|
|
|
34.4
|
%
|
|
Eliminations
|
|
|
|
(40,923
|
)
|
|
(29,729
|
)
|
|
(11,194
|
)
|
|
|
|
|
Total Bookings By Segment
|
|
|
|
$
|
1,047,582
|
|
|
$
|
1,128,804
|
|
|
$
|
(81,222
|
)
|
|
(7.2
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Bookings By Product Stream:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service
|
|
|
|
$
|
696,992
|
|
|
$
|
647,981
|
|
|
$
|
49,011
|
|
|
7.6
|
%
|
|
Original Equipment
|
|
|
|
350,590
|
|
|
480,823
|
|
|
(130,233
|
)
|
|
(27.1
|
)%
|
|
Total Bookings By Product Stream
|
|
|
|
$
|
1,047,582
|
|
|
$
|
1,128,804
|
|
|
$
|
(81,222
|
)
|
|
(7.2
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
|
|
|
|
|
|
|
|
|
|
|
|
May 2,
2014
|
|
April 26,
2013
|
|
Change
|
|
Bookings By Segment:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Underground Mining Machinery
|
|
|
|
$
|
939,103
|
|
|
$
|
1,310,427
|
|
|
$
|
(371,324
|
)
|
|
(28.3
|
)%
|
|
Surface Mining Equipment
|
|
|
|
1,033,910
|
|
|
949,825
|
|
|
84,085
|
|
|
8.9
|
%
|
|
Eliminations
|
|
|
|
(64,905
|
)
|
|
(106,756
|
)
|
|
41,851
|
|
|
|
|
|
Total Bookings By Segment
|
|
|
|
$
|
1,908,108
|
|
|
$
|
2,153,496
|
|
|
$
|
(245,388
|
)
|
|
(11.4
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Bookings By Product Stream:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service
|
|
|
|
$
|
1,307,391
|
|
|
$
|
1,236,525
|
|
|
$
|
70,866
|
|
|
5.7
|
%
|
|
Original Equipment
|
|
|
|
600,717
|
|
|
916,971
|
|
|
(316,254
|
)
|
|
(34.5
|
)%
|
|
Total Bookings By Product Stream
|
|
|
|
$
|
1,908,108
|
|
|
$
|
2,153,496
|
|
|
$
|
(245,388
|
)
|
|
(11.4
|
)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note - For complete information, including footnote disclosures, please
refer to the Company's Form 10-Q filing with the SEC.
|
|
|
|
|
JOY GLOBAL INC.
|
|
SUPPLEMENTAL FINANCIAL DATA
|
|
(Unaudited)
|
|
(In thousands)
|
|
|
|
|
|
|
|
|
|
|
|
Amounts as of:
|
|
|
|
|
|
May 2,
2014
|
|
January 31,
2014
|
|
October 25,
2013
|
|
July 26,
2013
|
|
Backlog By Segment:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Underground Mining Machinery
|
|
|
|
$
|
894,989
|
|
|
$
|
924,815
|
|
|
$
|
951,227
|
|
|
$
|
1,017,911
|
|
|
Surface Mining Equipment
|
|
|
|
744,560
|
|
|
587,732
|
|
|
554,971
|
|
|
615,397
|
|
|
Eliminations
|
|
|
|
(23,652
|
)
|
|
(14,502
|
)
|
|
(29,367
|
)
|
|
(50,781
|
)
|
|
Total Backlog By Segment
|
|
|
|
$
|
1,615,897
|
|
|
$
|
1,498,045
|
|
|
$
|
1,476,831
|
|
|
$
|
1,582,527
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Backlog By Product Stream:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service
|
|
|
|
$
|
633,252
|
|
|
$
|
592,364
|
|
|
$
|
554,838
|
|
|
$
|
539,787
|
|
|
Original Equipment
|
|
|
|
982,645
|
|
|
905,681
|
|
|
921,993
|
|
|
1,042,740
|
|
|
Total Backlog By Product Stream
|
|
|
|
$
|
1,615,897
|
|
|
$
|
1,498,045
|
|
|
$
|
1,476,831
|
|
|
$
|
1,582,527
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note - For complete information, including footnote disclosures, please
refer to the Company's Form 10-Q filing with the SEC.
Copyright Business Wire 2014