UPDATE 2-Joy Global Q4 profit beats Street, shares up

* Q4 profit tops analysts' estimates

* Sees decline in original equipment orders

* Exchange rates may hurt y-o-y oper earnings by $60 mln

* Shares up 13 pct in early trade (Adds analysts' comments; updates share movement)

By Amulya Nagaraj

BANGALORE, Dec 17 (Reuters) - Mining equipment maker Joy Global Inc (JOYG.O) posted a better-than-expected quarterly profit, helped by continued demand for its original equipment and aftermarket parts and services, but forecast 2009 results below market expectations.

Shares of the company shot up 13 percent to $25.70 in early trade before paring some gains to trade up about 9 percent at $24.75 later in the morning on Nasdaq.

Investors were bracing for the worst, but the company's quarterly results were solid and new awards were better than expected, Barclays Capital analyst Andy Kaplowitz said.

The $1.4 billion of new orders received in the fourth quarter was 48 percent higher than a year ago, the company said. However, Joy Global also saw a couple of order cancellations during the quarter.

Several analysts believe that the weak 2009 outlook, together with the cancellation of the two orders, could be bearish for the stock in the near term.

"We continue to believe that much of this pessimism is priced into the stock at current levels, but there remains further headline risk as we move into 2009, which will likely result in continued near-term volatility," Macquarie Research Equities analyst Steven Song said in a note to clients.

In its statement on Wednesday, Joy Global warned that it expects its customers to become selective about new mine expansion programs due to falling commodity prices that have limited cash flow for mining companies.

"With the outlook for new projects and the limited number of existing projects, the company anticipates a generally decelerating trend for future original equipment orders," Joy Global said.

Q4 BEATS BUT OUTLOOK WEAK

For the fourth quarter ended Oct. 31, the company posted a net income of $118 million, or $1.11 a share, compared with $70 million, or 64 cents a share, a year ago.

Analysts on average expected the company to earn $1.08 a share, before items, according to Reuters Estimates.

Joy Global said 2009 revenue may be reduced by $300 million and operating earnings by as much as $60 million, on a year-over-year basis, if exchange rates remained at their current levels.

For the current financial year, the company forecast earnings between $3.60 and $4.00 a share, on revenue of $3.5 billion to $3.7 billion.

Analysts on average were expecting earnings of $4.24 a share, excluding items, on revenue of $4.01 billion.

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