Joy Global boost profit but downsize for 2013

Mining equipment maker Joy Global’s fourth quarter earnings rose 23 per cent this year, but lower sales are expected in 2013 as commodity prices soften.

Joy reported a 23 per cent increase in fourth quarter profit to $212.6 million, up from the $172.3 million recorded in the same period last year.

While tough economic conditions slowed sales for Joy throughout 2012, the company said parts of its business had been boosted by strong demand from Australia.

“Original equipment orders were down in all regions except Africa and Australia,” it said.

“Aftermarket order increases were centered in South America, Australia and Africa. All other regions experienced a decrease in orders.”

The company said underground machinery sales rose four per cent in the last quarter, and other equipment sales were driven higher by demand from Australia and China.

Overall Joy said 2012 had been a “transitional year” and the softening demand felt over the past 12 months was expected to continue next year.

On the back of the changes Joy said it was moving to cut costs, downsize production, and restructure the business to stay competitive.

You can read more on the company’s performance and outlook here.

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