JOY TECHNOLOGIES INC. ANNOUNCES SECOND QUARTER RESULTS
JOY TECHNOLOGIES INC. ANNOUNCES SECOND QUARTER RESULTS PITTSBURGH, Sept. 16 /PRNewswire/ -- Joy Technologies Inc.
(NYSE: JOY) today reported net sales of $143.0 million for the quarter ended Aug. 28, 1992, an increase of $4.7 million from the same quarter last year.
The net loss for the quarter was $1.2 million, or $0.04 per common share, after special charges of $2.9 million after taxes. Net income for the current quarter before special charges was $1.7 million, or $0.05 per common share, which compares to a loss of $0.20 per common share after preferred stock dividends for the same quarter last year. The special charges consist of $1.5 million after taxes associated with the previously announced relocation of the company's environmental systems operations to Houston, and additional provisions totalling $1.4 million after taxes for long-term contract variances on two environmental systems projects. For the first half of fiscal 1993, sales were $282.6 million, compared to $285.7 million for the comparable period of the prior year. Net income for the current six-month period was $4.2 million compared to $2.0 million for the same period a year ago. Earnings per common share were $0.13 per share, an increase of $0.35 per share from a loss of $0.22 per share after preferred stock dividends in the first half of last year. Excluding the non-recurring charge and provisions, net income was $7.1 million or $0.22 per common share in the first six months of fiscal 1993. Marc F. Wray, chairman and chief executive officer, stated that, "Despite weak market conditions, operating profit and bookings for the current quarter improved over last year for the mining machinery segment, aided by a strong parts and repair business. Increased inquiry levels for both business segments indicate that the demand for new equipment is beginning to build. The upturn in the mining machinery business that we had anticipated in the second half of our fiscal year is now being confirmed by the recent identification of specific customer requirements." "The effects of high coal stockpiles and concerns about ownership changes and labor negotiations in the mining industry continue to depress the purchase of new equipment by U.S. coal mining operators", continued Wray. "However, our strategy to globalize the mining machinery business has started to pay off as offshore business helped to offset the soft domestic market. While net sales for the first six months are running slightly behind those for the previous year, operating profit and bookings for Joy's mining machinery segment for the recent six months approximate those of last year." "In the environmental systems segment, bookings in the first six months more than doubled from the previous year, reinstating our backlog to a level comparable to last year. The key factor in this bookings increase was the previously announced award to Joy and Gottfried Bischoff GmbH & Co. of a $155 million contract to install wet flue gas desulfurization scrubbers at a Taiwan power plant. Joy's portion of this contract is approximately $107 million." "The situations that led to establishing the provisions for long-term contract variances are limited to two environmental systems projects. Similar impacts are not expected on other Joy projects. The relocation of Joy's environmental systems group to Houston provides an effective operating base closer to major customers in a labor market rich with project engineering talent. While the related charge adversely affected second quarter earnings, this relocation is expected to provide considerable cost savings as well as to improve both product quality and response to customers", concluded Wray. Joy Technologies Inc. is a leader in the worldwide manufacturing and servicing of mining equipment for the underground extraction of coal and other bedded materials. The company is also a large supplier of air pollution and ash-handling equipment used for utilities and other industrial operations. JOY TECHNOLOGIES, INC. Financial Information Quarter Ended Aug. 28 and 23 1992 1991 Net sales $ 143,023,000 $138,337,000 Income (loss) before income taxes (1,624,000) (352,000) Provision for income taxes (435,000) 279,000 Net income (loss) (1,189,000) (631,000) Preferred stock dividend requirements -- (3,239,000) Net income (loss) applicable to common stock $ (1,189,000) $ (3,870,000) Net income (loss) per common share $ (.04) $ (.20) Weighted average number of common shares outstanding used in the calculation of per share amounts 31,462,466 19,834,000 Six Months Ended Aug. 28 and 23 Net sales $282,613,000 $285,744,000 Income before income taxes 7,356,000 5,059,000 Provision for income taxes 3,192,000 3,028,000 Net income 4,164,000 2,031,000 Preferred stock dividend requirements -- (6,453,000) Net income (loss) applicable to common stock $ 4,164,000 $ (4,422,000) Net income (loss) per common share $ .13 $ (.22) Weighted average number of common shares outstanding used in the calculation of per share amounts 31,486,535 19,818,835 Aug. 28, Feb. 28, 1992 1992 Cash $ 45,415,000 $ 76,918,000 All other current assets 285,872,000 253,633,000 Total current assets 331,287,000 330,551,000 Other assets 236,991,000 241,461,000 Total assets $ 568,278,000 $572,012,000 Short-term borrowings and current long-term debt $ 35,472,000 $ 46,541,000 All other current liabilities 135,805,000 131,205,000 (A) Total current liabilities 171,277,000 177,746,000 Long-term debt 305,815,000 306,489,000 Other liabilities 54,578,000 55,785,000 (A) Total stockholders' equity 36,608,000 31,992,000 (A) Total liabilities and stockholders' equity $ 568,278,000 $572,012,000 (A) Restated to reflect the adoption during the quarter ended May 29, 1992, of Statement of Financial Accounting Standards No. 109, "Accounting for Income Taxes". JOY TECHNOLOGIES INC. Business Segment Financial Information - Unaudited Three Months Ended Six Months Ended Aug. 28 & 23 Aug. 28 & 23 1992 1991 1992 1991 In thousands Net Sales: Mining machinery $105,591 $109,743 $216,016 $231,709 Environmental systems 37,432 28,594 66,597 54,035 Total net sales$143,023 $138,337 $282,613 $285,744 Operating profit (loss): Pct. Pct. Pct. Pct. Mining machinery $14,740 14.0$14,021 12.8 $32,043 14.8 $34,142 14.7 Environmental systems (2,845)(7.6) 206 .7 (1,898)(2.8) 870 1.6 Corporate expense - net (4,033) -- (2,109) -- (7,095) -- (5,275) -- Unusual item(A) (2,559) -- -- -- (2,559) -- -- -- Interest expense (7,362) --(13,432) -- (14,610) -- (26,998) -- Interest income 435 -- 962 -- 1,475 -- 2,320 -- Income (loss) before income taxes & extraord. item $(1,624)(1.1) $(352) (.3) $7,356 2.6 $5,059 1.8 Bookings: Mining machinery $100,353 $98,638 $220,466 $224,047 Environmental systems 124,056 19,252 131,606 58,940 Total bookings $224,409 $117,890 $352,072 $282,987 Backlog: Mining machinery $90,985 $89,644 Environmental systems(B) 211,038 175,416 Total backlog $302,023 $265,060 Pct. -- Percentage of business segment's net sales. (A) The unusual item represents a provision for the estimated costs associated with the relocation of the Environmental Systems segment's California operations to Houston. (B) Ending backlog at Aug. 23, 1991, has been adjusted to remove a single order of $38,194 originally recognized as a booking on the basis of the receipt of a letter of intent; the timing of the receipt of a final purchase order is currently uncertain. -0- 9/16/92 /CONTACT: James Q. Grimshaw, vice president of Joy Technologies, 412-562-4525/ (JOY) CO: Joy Technologies, Inc. ST: Pennsylvania IN: MNG SU: ERN
CD -- PG004 -- 0274 09/16/92 16:03 EDT
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|Date:||Sep 16, 1992|
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