Joy Global Inc., a mining equipment company, declares earnings for the third quarter. The company’s shares go down at about 1.3 percent and closed at $47.73 on Monday.

The Company was upgraded by David A. Bleustein from “Neutral” to “Buy”. Bleustein also cites expectations of growth in aftermarket sales and higher coal prices.

“We believe the combination of unfavorable weather conditions and reduced natural gas prices has contributed to an increase in coal inventories and a commensurate decline in coal prices. Over the balance of the year, we believe the combination of normal demand growth and reduced coal production levels is likely to reduce or eliminate the excess coal inventories that contributed to the recent weakness in coal spot prices.”, Bleustein said.

There are key developments and analyst opinion with regards to the earnings of Joy Global Inc. The results of the Milwaukee-based Company are tied heavily to the ups and downs of the coal market. Analysts polled by Thomson Financial expect a profit of 70 cents per share on $662.4 million in revenue.

In July, the company cut its fiscal-year guidance, saying it expected the second half of the year to be impacted by continued weakness in the U.S. coal market and certain operational factors. Joy Global said at the time that it’s been most impacted by the lack of demand for parts and aftermarket services in Central Appalachia which is historically the company’s largest U.S. underground market segment.

Additional factors which are expected to carry the third- and fourth-quarter and fiscal-year results include production and delivery delays, and a liability relating to a roof support system sold in China.

This entry was posted on Wednesday, August 29th, 2007 at 1:57 am and is filed under Aftermarket parts news. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.