Joy Global (JOYG) Tops Q2 Views; Guides Above EPS The Street On Cost Cuts

June 3, 2009 7:15 AM EDT

Joy Global (Nasdaq: JOYG) reports Q2 earnings of $1.17 per share, above the consensus of $0.89. Revenues rose 10% to $924 million, versus the consensus of $871.6 million.

Before cancellations, new aftermarket bookings were 14 percent lower than the year-ago period, with almost all of that decrease occurring in the P&H business.

Over the last three quarters, the Company received $300 million of order cancellations which were concentrated in North American copper and iron ore, U.S. Central Appalachian coal and Russian coal.

Based on some slowing in aftermarket order rates and the impact from earlier cancellations and reschedules, the Company now expects the revenues for fiscal 2009 to be in the lower half of the prior guidance range. Conversely, the Company expects earnings per share to continue to benefit from cost and efficiency efforts and therefore to be in the upper half of its prior guidance range, including any costs for restructuring to be recorded in the second half. As a result, Joy Global sees FY09 EPS of $3.80-$4.00 versus the consensus of $3.56 consensus. Sees FY09 revenues $3.5-$3.6 billion, versus the consensus of $3.47 billion.

The company said, "We have gained increased confidence in our fiscal 2009 and increased clarity into fiscal 2010."

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