JOY TECHNOLOGIES REPORTS FIRST QUARTER RESULTS
JOY TECHNOLOGIES REPORTS FIRST QUARTER RESULTS PITTSBURGH, June 24 /PRNewswire/ -- Joy Technologies Inc.
(NYSE: JOY) reported today that net income for the first quarter ended May 29, 1992, was $5.4 million, up from $2.7 million in the same quarter last year.
Earnings on Joy common stock increased to $.17 per share from a loss of $.03 per share in the first quarter of last year. Net sales in the first quarter of this year were down 5.3 percent to $139.6 million from $147.4 million in the same period last year. Income before interest and taxes for the first quarter was $15.2 million, down from $17.6 million in the same quarter last year. Net income applicable to common stock was favorably affected by Joy's financial recapitalization last fall that resulted in $6.3 million of lower interest expense and elimination of over $3 million of preferred stock dividend requirements in the first quarter. During the quarter Joy adopted Statement of Financial Accounting Standards No. 109, Accounting for Income Taxes ("FAS 109"). The adoption increased Joy's deferred tax liability account and reduced shareholders' equity by approximately $36.0 million, which was in line with the estimates previously disclosed in Joy's 1992 annual report. With the adoption of FAS 109, Joy's tax provision for the first quarter ended May 29, 1992, was reduced by $.03 per share. The adoption of FAS 109 served to normalize the company's effective tax rate by removing distortions caused by the accounting for certain assets written up in Joy's 1987 leveraged buyout, thereby better reflecting Joy's actual results. Marc F. Wray, chairman and chief executive officer, stated, "Net sales, operating profit and bookings for Joy's mining machinery segment were down from the first quarter of last year, due principally to continued high coal stockpiles, unsettled labor issues, and ongoing industry consolidation in the U.S. These forces continue to make coal mining operators hesitant to purchase new equipment. Although new equipment sales in the U.S. were down, backlog for equipment rebuilds reached record levels during this year's first quarter." Wray also said, "The recently announced agreement between Joy and a subsidiary of Addington Resources Inc. benefits Joy by providing a new application and broadening the market for Joy's underground mining equipment." Net sales in Joy's environmental systems segment improved by 14.6 percent to $29.2 million from $25.4 million in the same quarter last year. Operating profit for the segment increased over that for the first quarter last year. Environmental bookings and backlog were down significantly from the comparable quarter in the prior year. Wray stated, "Although bidding activities reached record levels, the award of specific contracts continued to be affected by delayed industry decisions regarding compliance under the United States Clean Air Act Amendments of 1990. However, Joy is continuing efforts to expand market development in foreign countries, including Mexico, the Peoples Republic of China and Taiwan, where current demand is very substantial." 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 North American supplier of air pollution and ash-handling equipment used for utilities and other industrial operations. JOY TECHNOLOGIES INC. Quarter Ended May 29, 1992 May 24, 1991 Net sales $139,590,000 $147,407,000 Income before income taxes 8,980,000 5,411,000 Provision for income taxes 3,627,000 2,749,000 (A) Net income 5,353,000 2,662,000 Pfd. stock dividend requirements -- (3,214,000) Net income (loss) applicable to common stock 5,353,000 (552,000) Income (loss) per common share $.17 $(.03) Weighted average number of shares outstanding used in the calculation of per share amounts 31,510,603 19,803,670 May 29, 1992 Feb. 28, 1992 Cash $63,618,000 $76,918,000 All other current assets 279,298,000 253,633,000 Total current assets 342,916,000 330,551,000 Other assets 236,971,000 241,461,000 Total assets 579,887,000 572,012,000 Short-term borrowings and current long-term debt 40,300,000 46,541,000 All other current liabilities 133,050,000 131,205,000 (A) Total current liabilities 173,350,000 177,746,000 Long-term debt 312,831,000 306,489,000 Other liabilities 56,061,000 55,785,000 (A) Contributed stockholders' equity 177,084,000 177,088,000 Accumulated deficit (134,775,000) (140,128,000)(A) Cumulative translation adjustment (3,556,000) (3,860,000) Cumulative pension adjustment (1,108,000) (1,108,000) Total liabilities and stockholders' equity 579,887,000 572,012,000 (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." BUSINESS SEGMENT FINANCIAL INFORMATION - UNAUDITED Three Months Ended May 29, 1992 May 24, 1991 Net sales: Mining Machinery $110,425 $121,966 Environmental Systems 29,165 25,441 Total net sales 139,590 147,407 Operating profit (loss): Mining Machinery 17,303 15.7 pct. 20,121 16.5 pct. Environmental Systems 947 3.2 pct. 664 2.6 pct. Corporate expense - net (3,062) -- (3,166) -- Interest expense (7,248) -- (13,566) -- Interest income 1,040 -- 1,358 -- Income before income taxes 8,980 6.4 pct. 5,411 3.7 pct. Bookings: Mining Machinery 120,113 125,409 Environmental Systems 7,550 39,688 Total bookings 127,663 165,097 Backlog: Mining Machinery 96,223 100,749 Environmental Systems 124,414 184,758 Total backlog 220,637 285,507 pct. - Percentage of business segment's net sales. -0- 6/24/92 /CONTACT: James Q. Grimshaw, v-p & treasurer of Joy Technologies, 412-562-4525/ (JOY) CO: Joy Technologies Inc. ST: Pennsylvania IN: MNG MAC SU: ERN
DM-CJ -- PG013 -- 3423 06/24/92 16:09 EDT
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|Date:||Jun 24, 1992|
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