Joy Global Profit Beats Street View, Shares Rise

CHICAGO (Reuters) - Mining equipment maker Joy Global Inc (JOYG.O) reported a better-than-expected rise in quarterly earnings on Thursday, citing strong international demand and improving conditions in the U.S. coal market.

The company also raised its forecast for 2008 profit and sales, sending its shares up more than 6 percent in early trading.

Joy Global said earnings from continuing operations for its fiscal first quarter that ended Feb. 1, rose to $71.1 million, or 64 cents per share, from $59.7 million, or 51 cents per share, a year earlier.

Analysts' average earnings forecast was 62 cents per share, according to Reuters Estimates.

Sales rose to $640.3 million from $560.5 million. Analysts had expected $638.7 million.

Robert McCarthy, an analyst at Robert W. Baird & Co, said "exceptional order activity" during the quarter had added to Joy's "already strong longer-term outlook."

The Milwaukee, Wisconsin-based company said it expects earnings for the full fiscal year of $3.15 to $3.45 per share, up from a previous estimate range of $3.10 to 3.25 a share. The average Wall Street forecast is $3.34.

The mining industry's production capacity has fallen behind growth in commodity demand, and investment over an extended period will be needed to boost capacity, Joy Global Chief Executive Mike Sutherlin said in a statement

Lagging production capacity "has resulted in supply shortages and dramatic increases in commodity prices," he said. "These price increases underlie the expectation that it will take several years and significant investment for capacity to catch up to demand."

Joy Global shares rose $4.51, or 6.8 percent, to $70.32 on the Nasdaq.

(Reporting by Nick Carey, with additional reporting by James Kelleher; Editing by Maureen Bavdek)