Joy Global’s first quarter numbers were mixed, with increases in bookings but a decline in sales. The company valued its first quarter 2017 service bookings at $524 million, up 21% over the same period last year. The company reported total bookings of $615 million, an increase of 12%. Net sales fell $498 million, or 5%.
Bookings for underground mining machinery increased 14% over the same period last year. Original equipment orders decreased 28%. Net sales for underground mining machinery decreased 8%. Bookings for surface mining equipment increased 12%. Original equipment orders increased 19%. Net sales for surface mining equipment decreased 4%.
Operating loss for the first quarter totaled $2 million, compared to $45 million in the same period last year.
CEO Ted Doheny said he does not expect the trend in increased production levels to continue. “The mining industry remains cautious with overall capital expenditures still projected to decline in 2017,” he said. “While there is evidence the deferred maintenance cycle on installed equipment is coming to an end, investment in new capacity remains slow. Only projects that deliver a step change in productivity are proceeding.”
Doheny said he expects the Komatsu merger to close at the latest by mid-2017. The merger is subject to, among other things, stockholder approval and the resolution of any waiting period.
