PRELIMINARY EXPECTATIONS OF FINANCIAL RESULTS FOR SECOND QUARTER ANNOUNCED BY JOY TECHNOLOGIES INC.
PITTSBURGH, Sept. 9 /PRNewswire/ -- Joy Technologies Inc. (NYSE: JOY) today announced preliminary expectations of financial results for its second fiscal quarter ended Aug. 27, 1993. Revenues for the Mining Machinery Group in the second quarter were approximately even with those for the same quarter last year, despite continued labor actions against selected coal mines by the United Mine Workers of America (UMWA). A significant increase in original equipment sales in the Unites States offset decreases in both non-U.S. original equipment and U.S. aftermarket sales from levels in the second quarter last year. The decrease in aftermarket sales was directly related to the reduction in underground coal mining caused by the UMWA actions. As a result of this change in product mix, profitability of the Mining Machinery Group for the quarter was approximately $4 million below last year's level. Improved orders for original equipment in the second quarter resulted in a 30 percent increase in bookings from the same period a year ago. Revenues for the Environmental Group were down in the second quarter compared to the same quarter last year, largely from the absence this year of revenues for the condenser and damper businesses, which were sold in February 1993. The Group, however, returned to profitability as the result of improved performance on projects. Bookings by the Environmental Group in the second quarter were substantially below those for the same period last year, when the company was awarded a $107 million wet scrubber project in Taiwan. Overall, the second quarter is expected to be slightly more profitable than the first quarter of this year, when the company reported $1.5 million of net income. Net income benefited from insurance recoveries, offset by a provision for restructuring the Mining Machinery Group and an increase in deferred taxes resulting from the recent increase in U.S. federal income tax rates. Both interest expense and corporate expense for the second quarter were below last year's levels and net income related to operations before unusual items was slightly positive. In the second quarter of last year, project cost overruns in the Environmental Group and a provision for relocation expenses of the Environmental Group headquarters resulted in a net loss for the company. A company spokesman stated that the release of final operating results for the second quarter is expected on or before Sept. 20, 1993. Joy Technologies Inc. is a leader in the worldwide manufacturing and servicing of mining equipment for the extraction of coal and other bedded materials. The company is also a major supplier of air pollution and ash handling equipment used for utilities and other industrial operations. A registration statement relating to the company's $200 million of senior notes has been filed with the Securities and Exchange Commission but has not yet become effective. These securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state. /delval/ -0- 9/9/93 /CONTACT: John F. Moynahan, vice president and treasurer of Joy Technologies, 412-562-4540/ (JOY)
CO: Joy Technologies Inc. ST: Pennsylvania IN: MNG SU:
CD -- PG006 -- 0453 09/09/93 16:18 EDT
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|Date:||Sep 9, 1993|
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