* 2nd-quarter adj EPS $1.73 vs estimates $1.56
* Cuts 2013 EPS outlook to $5.60-$5.80 from $5.75-$6.35
* 2nd-quarter orders fall about 8 percent
* Shares down 2 percent in premarket trading
By Bijoy Anandoth Koyitty
May 30 Mining equipment maker Joy Global Inc
reported lower second-quarter results and cut its
earnings outlook for the full year, as a fall in commodity
prices forces miners to slash capital spending.
Miners around the world are under intense pressure to cut
costs as they contend with volatile commodity prices, rising
wages, labor unrest and lower-grade ores.
Joy Global shares were down 2 percent in trading before the
bell. They closed at $55.08 on the New York Stock Exchange on
The company said it expects customers to deploy capital
expenditure for mining equipment on a selective basis.
"They will do so to rebalance their mine portfolio by adding
assets that have quick returns and which will operate low on the
global cost curve," Chief Executive Mike Sutherlin, scheduled to
retire at the end of this year, said in a statement.
The company said orders fell more than 8 percent in the
three months ended April 26 -- their fifth straight quarterly
fall -- hurt by lower demand for its surface mining equipment.
"Orders will need to improve if Joy is expected to achieve
their 2014 goal of flat revenues," Jefferies & Co analyst
Stephen Volkmann said in a client note.
Joy Global's results follow a disappointing quarter reported
by mining equipment giant Caterpillar Inc, which also
cut its 2013 profit forecast.
A weaker-than-expected recovery in China, the largest market
for companies like Joy Global and Caterpillar, and the euro zone
struggle have hurt the demand for commodities globally.
China is the world's top buyer of copper and iron ore, but
recent disappointing manufacturing data has raised concerns that
its tepid import appetite could worsen a global supply surplus
and weaken prices.
Global miners such as BHP Billiton have put
billions of dollars worth of mines, projects and aluminium
operations up for sale as they look to slash costs, cut debt and
focus on their highest returning assets as commodity prices
Joy Global cut its earnings forecast for the year to
$5.60-$5.80 per share from $5.75-$6.35.
The company also trimmed the top end of its revenue outlook
to $5.0 billion from $5.2 billion. The low end of the forecast
remained unchanged at $4.9 billion.
Earnings for the quarter ended April 26 fell 15 percent to
$181.6 million, or $1.69 per share, from a year earlier.
Excluding items, the company earned $1.73 per share.
Revenue fell 11.7 percent to $1.36 billion.
Analysts on average had expected earnings of $1.56,
excluding items, on revenue of $1.28 billion, according to
Thomson Reuters I/B/E/S.