The Wisconsin-based original equipment manufacturer, now a controlling stakeholder in Chinese equipment producer International Mining Machinery, reported a 15% rise in bookings for the quarter ended January 27 to $US1.4 billion while net sales jumped 31% to $1.1 billion year-on-year.

Operating income for the period totaled $214 million, or 18.8% of sales, versus performance in the first fiscal quarter of 2011 of $154 million in operating income or 17.7% of sales.

Joy’s bookings were up 17% to $1.4 billion in the initial fiscal 2012 period, $84.3 million of which stemmed from its new LeTourneau arm and $15.5 million of which came from newly-acquired IMM.

Core underground and surface orders rose 9% versus the same quarter last year; aftermarket orders were up 21% but original equipment orders slipped 3%. Officials noted that the stronger US dollar reduced bookings by $9 million during the quarter.

The OEM’s underground mining machinery segment achieved its second highest-ever first quarter bookings (excluding IMM), but recorded a 2% drop in orders year-on-year versus a record performance in 2011.

Aftermarket bookings increased 26%, but that news was tempered by a 19% decrease in original equipment bookings. Officials said the primary aftermarket customers leading to the increase came from the United States, Australia and China.

Joy confirmed that original equipment orders were down in all regions, compared to record bookings it achieved during last year’s comparable period. That included a major longwall system in Australia.

Surface mining equipment bookings, meanwhile (excluding LeTourneau) jumped 40% from the first quarter of 2011. Original equipment orders rose 81% year-on-year and aftermarket bookings also increased by 20%.

“We are very pleased with our first quarter, and it gives us a very strong start to our 2012,” president and chief executive officer Mike Sutherlin said.

“Our core surface and underground businesses grew revenues…and operating leverage enabled them to expand operating margins to over 20%. Orders in these core businesses were strong, but lumpy.”

He cited last year’s strong performance for the comparable drop in underground original equipment orders in the quarter, and noted that surface original equipment orders and aftermarket parts and services in both segments were especially strong and in line with the company’s outlook.

Looking ahead, Joy said that, along with an improving global economic outlook, its customers are anticipating organic growth projects for their highest capital returns. Because of that, international miners have announced capex increases by over 15%this year and major diversified mining houses are realizing 20%-plus increases in their capital budgets.

These funds, the OEM said, are going into new mine and mine expansion projects primarily in China, Australia and Russia coal as well as for copper in South America and iron ore in Africa and South America.

US miners are also seeing a capex budget rise for 2012, though it is much less aggressive at 5%. Most of the earmarked money, it added, is focused on expanding port facilities to increase coal exports and for selected production expansion at lower-cost mines to rebalance portfolios and lower production costs.

"There is risk in the US coal market as mining customers reduce production at higher cost mines to balance weak demand," Sutherlin said.

"The company’s current exposure to US underground coal is 20 to 25% of global revenues. Based on models from similar prior periods of mild weather in North America and prior periods of low gas prices that lead to fuel switching, the company believes that continued weakness in the US coal market could reduce total revenues by up to 4 to 6 per cent.”

While some of that was already factored into its initial guidance figures, Joy said it feels the balance can be offset by more international market strength.

“[T]he company does not expect the US coal market to adversely affect its 2012 guidance," he said.

Including IMM and other related activities into its guidance for the balance of the year, Joy said its revenue outlook is now $5.6 to $5.8 billion.