(By Balachander) Joy Global Inc. (NYSE:JOY) reduced its earnings forecast for 2012 after the maker of mining equipments reported lower-than-expected quarterly results amid drop in bookings.
The Milwaukee, Wisconsin-based company said the original equipment order rate is impacted by a project pipeline that has slowed and it expects "greater lumpiness" in original equipment bookings going forward.
Joy Global added that the deceleration of China demand has deteriorated international markets more quickly and severely than previously expected although the U.S. market has progressed in line with its expectations.
For the third quarter ended July 27, bookings dropped 25 percent to $1.1 billion, with original equipment orders slumping 62 percent. Backlog fell to $2.8 billion from $3.1 billion at the end of the second quarter.
Net income increased to $193.6 million or $1.81 per share from $173.1 million or $1.62 per share in the second quarter of last year. Earnings missed market expectations of $1.88 a share.
Net sales jumped 22 percent to $1.39 billion, versus consensus estimate for a growth of 25.4 percent.
Looking ahead for the full year, the company now expects earnings per share, before charges, in the range of $7.05 to $7.20 from prior expectations of $7.15 to $7.45. Revenue is now projected to be between $5.45 billion and $5.55 billion from $5.5 billion to $5.7 billion projected earlier.
Analysts expect earnings of $7.26 per share on revenue of $5.56 billion for the 12 months ending October.
JOY ended Tuesday's regular trading at $53.07. The stock has been trading in the 52-week range between $47.69 and $96.00.