MILWAUKEE (AP) -- Mining equipment supplier Joy Global said Thursday its fiscal second-quarter net income dropped 15 percent, hurt by a steep decrease in demand for underground mining machinery.
The Milwaukee-based company also warned that market conditions remain tough, and it cut its previous guidance for the full fiscal year. Its shares fell nearly 2 percent in premarket trading.
For the quarter ended April 26, Joy Global earned $181.6 million, or $1.69 per share, down from $213.6 million, or $2 per share, in the 2012 second quarter. Excluding restructuring charges, the company earned $1.73 per share.
Revenue fell 12 percent to $1.36 billion from $1.54 billion, as sales of underground mining equipment plunged 23 percent to $681.9 million, hurt by a soft U.S. coal market and lower shipments to China and Eurasia.
Despite the drops, the results beat Wall Street predictions. Analysts, on average, expected a profit of $1.56 per share on $1.28 billion in revenue, according to FactSet.
Joy Global said market conditions remained tough during the quarter. Overall, original equipment sales fell 16 percent and aftermarket sales dropped 8 percent. Bookings decreased 8 percent to $1.1 billion.
The company said the growth of global commodity demand continues to be slowed by the sluggish economic recovery in the U.S., continued tough market conditions in Europe and a weaker-than-expected recovery in China.
As a result, the company said it expects its customers to continue to be selective about their spending on mining equipment and cut its outlook for the full year.
Joy Global said it now expects to earn $5.60 to $5.80 per share, down from its previous guidance of $5.75 to $6.35 per share. Revenue is now expected to total between $4.9 billion and $5 billion. The company previously predicted $4.9 billion to $5.2 billion.
Analysts, on average, expect a profit of $6.13 per share on $5.03 billion.
Joy Global shares fell 98 cents to $54.10 in premarket trading. The stock has traded between $47.69 and $69.19 in the past 52 weeks, and is down nearly 14 percent since the start of the year.