UPDATE 1-Joy Global cuts '08 profit forecast on higher charges

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May 6 (Reuters) - Mining equipment maker Joy Global Inc (JOYG.O) lowered its 2008 earnings forecast, citing higher charges from the acquisition of conveyor equipment maker Continental Global Inc and early termination of a maintenance and repair contract.

The company now sees 2008 adjusted earnings of $2.96 a share to $3.22 a share, down from its previous forecast of $3.15 a share to $3.45 a share.

The contract termination will hurt 2008 earnings by 14 cents to 17 cents a share.

Charges related to higher valuations of Continental Global will reduce profit by 5 cents to 6 cents a share, with the majority coming in the second quarter, the company said in a statement.

The maintenance and repair contract covers equipment that includes a dragline delivered in 1996 and provisions to mitigate risk related to buying a new dragline.

The company, however, backed its 2008 revenue forecast of $3.1 billion to $3.3 billion.

Analysts were expecting earnings of $3.41 a share, before items, on revenue of $3.24 billion, according to Reuters Estimates.

The company's stock closed at $78.64 Monday on Nasdaq. (Reporting by Dhanya Ann Thoppil in Bangalore; Editing by Amitha Rajan)