* 2nd-qtr adj. earnings/shr $0.76 vs est $0.71
* Service bookings up 8 pct
* Shares rise as much as 5.3 pct
(Adds forecast, analyst comment, details, share move)
By Sagarika Jaisinghani
June 5 Mining equipment maker Joy Global Inc
reported a better-than-expected quarterly profit and
said orders for maintenance services rose for the second
Joy Global shares rose as much as 5.3 percent in early
trading on Thursday.
Demand for equipment maintenance has picked up in 2014 after
miners put off servicing for more than a year due to a coal
supply glut that led to weak prices.
Joy Global, which gets about two-thirds of its revenue from
coal miners, said service orders rose about 8 percent in the
second quarter ended May 2. Maintenance made up about two-thirds
of the quarter's orders.
The company, which also supplies to miners of copper, iron
ore and other minerals, said total orders fell 7 percent to
$1.05 billion from a year earlier, but were up 22 percent from
the first quarter.
BMO Capital Markets analyst Joel Tiss said more than $1
billion in orders gave some hope that the company's business was
Joy Global, however, remained cautious in its outlook for
the rest of the year.
"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," the company said.
Pricing in the metallurgical coal markets in the first three
months of 2014 was the weakest since 2009, Joy Global said.
Coal companies have been idling high-cost mines in an
attempt to boost prices for metallurgical, or steelmaking, coal
as the two-year long slump in prices was compounded by weak
demand from Europe and Asia.
Iron ore prices also declined in the past two months due to
a supply glut, Joy Global said.
The company kept its forecast of earning $3.10-$3.50 per
share on revenue of $3.6 billion-$3.8 billion in the year ending
Second-quarter net income fell to $74.0 million, or 73 cents
per share, from $181.6 million, or $1.69 per share, a year
Excluding items, Joy Global earned 76 cents per share.
Net sales dropped 32 percent to $929.7 million.
Analysts on average expected earnings of 71 cents per share
on revenue of $932.1 million, according to Thomson Reuters
Joy Global shares were up 4.6 percent at $60.49 on the New
York Stock Exchange after touching a high of $60.90 on Thursday
They had gained about 9 percent in the year through
Wednesday, lagging a 24 percent increase in the Dow Jones U.S.
(Reporting by Sagarika Jaisinghani in Bangalore; Editing by