New orders for the quarter totaled $US538 million, up 44% on the first quarter of last year. New orders for original equipment were worth more than $US250 million.
Net sales increased 35% to $US384 million, while net income was $US22.2 million, compared with $US900,000 in the first quarter fiscal 2004.
“Incoming customer order rates continue to exceed sales, and our production and material sourcing continue to increase,” Joy Global chairman John Hanson said.
“A combination of favourable product mix and improved price realisation, which is gradually helping to offset higher steel-related costs, and positive manufacturing cost absorption from increased production rates coupled with good cost control, all contributed to first quarter results.”
Joy Global said the outlook remained strong, particularly for its main US market.
“Major public coal companies have recently announced significantly higher capital spending plans for 2005. In addition, discussions of future new mine developments are becoming more frequent. Overall, we continue to believe that US coal could experience a relatively long commodity cycle,” the company said.
Joy said established export producers (including Australia and South Africa) continued to drive production upward to meet world demand for metallurgical and thermal coal.
Coal production and demand in China continued to grow strongly, with its production estimated at 1.96 billion tonnes for 2004.
“In Russia, the re-capitalisation of coal mining is well underway. These positive developments lead us to believe that total bookings in China and Russia in fiscal 2005 could be substantially higher than last year,” Joy Global said.
The company said assuming adequate supplies of raw materials and components from its suppliers, revenues would range $US1.9-2.1 billion for the next 12 months.
