Joy Global, a provider of high-productivity mining solutions, reported second quarter fiscal 2016 results.
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Consolidated net sales totaled $602 million, a 26 percent decrease versus the second quarter of last year. Original equipment sales decreased 35 percent and service sales decreased 22 percent compared to the prior year.
Current quarter net sales were reduced by $24 million from the impact of foreign currency exchange movements versus the year ago period, a $4 million decrease for original equipment and a $20 million decrease for service sales.
When adjusting for foreign currency exchange, sales were down 23 percent compared to the second quarter of last year with original equipment sales down 33 percent and service sales down 19 percent.
Operating loss for the second quarter of fiscal 2016 totaled $4 million, compared to operating income of $93 million in the second quarter of fiscal 2015.
The second quarter of fiscal 2016 included an aggregate negative impact of $35 million from restructuring charges compared to a net $8 million negative impact in the second quarter of fiscal 2015 for restructuring charges and mark to market pension income.
The $70 million year-over-year decrease in adjusted operating income in the quarter was due to lower sales volumes, unfavorable product mix, and lower manufacturing absorption which was partially offset by savings from the company's cost reduction programs and lower incentive based compensation.
Consolidated bookings in the second quarter totaled $681 million, a decrease of 9 percent versus the second quarter of last year. Original equipment orders increased 12 percent while service orders were down 14 percent compared to the prior year.
Current quarter bookings were reduced by $8 million from the impact of foreign currency exchange movements versus the year ago period, a $2 million increase for original equipment and a $10 million decrease for service bookings.
After adjusting for foreign currency exchange, orders were down 7 percent compared to the second quarter of last year, with original equipment orders up 10 percent and service orders down 12 percent.
Bookings for underground mining machinery decreased 17 percent in comparison to the second quarter of last year.
Original equipment orders decreased 15 percent compared to the prior year, with declines in all regions except in Eurasia, where a longwall system order was received in the current quarter. Service orders decreased 18 percent compared to the prior year, with declines in all regions except Eurasia and Africa.
Orders for underground mining machinery were reduced by $7 million from the impact of foreign currency exchange compared to the second quarter of last year.
Bookings for surface mining equipment decreased 1 percent in comparison to the prior year second quarter. Original equipment orders increased 102 percent compared to the prior year.
Original equipment orders increased in North America where a multiple electric shovel order was booked in the current quarter with declines in all other regions.
Service orders decreased 10 percent compared to the prior year, with declines in all regions except Eurasia and Africa. Orders for surface mining equipment were reduced by $1 million from the impact of foreign currency exchange compared to the second quarter of last year. ■