Joy Global announces 4Q14 and full year results

Joy Global has announced its 4Q14 and full year results as weak commodity markets continued to hits bottom line.

4Q14 results

Operating profit (excluding unusual items) rose to US$197 million in the fourth quarter compared to US$193 million in 2013 as higher service volumes, favourable manufacturing cost absorption and savings from the company’s cost reduction programme boosted performance. Sales of services were up 7% q/q to US$743.2 million, helping to offset a 20% drop in original equipment sales.

Bookings, however, were down substantially with original equipment bookings down 63% and service bookings down 9%. Consolidated bookings totaled US$783 million for the quarter, down from just under US$1.1 billion over the same period last year. Underground equipment bookings suffered most, dropping 69% on 4Q13; opencast equipment bookings dropped 51%.

Full year results

For the year, the company recorded an operating profit of US548.6 million (excluding unusual items), a drop of almost 43.7% on 2013. Sales were down 25% from just over US$5 billion in 2013 to US$3.8 billion in 2014. Within this, sales of original equipment were down 47%, while sales of services dropped just 6%.

Bookings of original equipment were down 26% over the year, while bookings of services rose slightly by 2%. Meanwhile, services accounted for 71.8% of total bookings and 68% of sales in 2014, showing the continuing weakness in demand for original equipment. In contrast, services represented only 45% of sales in 2013.

Outlook

The company expects the squeeze on CAPEX to continue through 2015 with expected consolidated revenue in the range of US$3.6 – US$3.8 billion.

Written by Jonathan Rowland.

Read the article online at: https://www.worldcoal.com/mining/17122014/world-coal-joy-global-announces-4q14-and-full-year-results-coal1695/