Bucyrus has been delivering its longwall equipment to Whitehaven Coal’s North Narrabri mine in New South Wales over recent months and first longwall coal is expected in December.
Original equipment sales to the underground mining market totalled $US134.7 million in the recent quarter, compared to $97.8 million in the March quarter of 2010.
“This increase was due to increased sales in the Chinese, United States and Australian markets due to improving coal prices and growing steel production,” the original equipment manufacturer said.
Aftermarket parts and services sales for the underground mining market increased 20.3% year-on-year to $134.9 million.
This performance largely came from the company’s US customers.
“This increase in longwall aftermarket parts and service sales was primarily due to increased demand as a result of numerous new systems put into production in the past two years,” Bucyrus said.
“The increase in room and pillar aftermarket sales was primarily due to an increase in rebuilds and increased demand for transportation equipment.”
Bucyrus’ $1.3 billion acquisition of surface mining equipment maker Terex was completed on February 19 and helped lift sales in the March quarter.
Total surface mining equipment sales increased 90.7% year-on-year to $324.5 million, while its aftermarket business for this market increased sales revenue by 38.7% to $315.5 million.
Overall revenues were up 49.7% year-on-year to $909.7 million while adjusted earnings before interest, taxes, depreciation and amortisation were up 20% to $135.5 million.
Part of the adjustments included costs associated with the pending merger with major OEM Caterpillar, with this transaction expected to close mid-year.
As part of its observations on market conditions, Bucyrus noted that demand for “virtually all” of its original equipment is strong.
Australia and Canada are expected to remain as strong markets for aftermarket parts and services.
“Sales growth is expected in the United States market as electric mining shovels are coming into the life cycle stage where orders for after markets parts and service are expected to increase.
“In the underground segment, demand for aftermarket parts and services is expected to increase from 2010 levels.”
