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$JOY now expects the Komatsu America merger to close by mid-2017, or earlier, depending on the progress of the remaining regulatory clearances. The company is confident that through this transaction its customers and other business partners will benefit from a broader offering of products, systems and solutions.
$JOY's bookings for 1Q17 increased 12% to $615MM from last year. Original equipment orders decreased 23%, while service orders grew 21%. Current quarter bookings included a $10MM favorable impact from foreign currency exchange movements, a rise for original equipment and for service bookings.
$JOY reported a narrower 1Q17 loss driven by positive impact for restructuring charges, merger costs and net discrete tax benefit. Net loss narrowed to $0.28MM or breakeven per share from $40.22MM or $0.41 per share last year. Net sales fell to $497.77MM from $526.3MM. Adjusted loss per share narrowed to $0.06 from $0.23.
Mining equipment manufacturer $JOY reported a quarterly loss for 4Q16. Net loss was $8.4MM or $0.09 per share in 4Q16 compared to a net loss of $1.31Bil or $13.49 per share in 4Q15. Consolidated net sales were $656MM, down 24% versus 4Q15. Consolidated bookings were $559MM, down 9% versus the prior-year period.
$JOY's stockholders overwhelmingly voted to approve the company's pending acquisition by Komatsu America, a subsidiary of Komatsu. The transaction is on track to close by mid-2017, and may occur in early-2017 depending on the progress of the remaining regulatory clearance procedures.
$JOY's outlook remains tepid and financial condition of its customers is challenged, which will continue to impact both the timing and level of its incoming orders through 2017, while recent increase in certain commodity prices is positive. $JOY will no longer provide annual guidance, due to the pending merger transaction with Komatsu America.
$JOY's 3Q16 net sales for Underground mining machinery segment tumbled 30% and Surface mining equipment segment fell 21% versus 2Q15, due to lower original equipment and service sales and negative impact of foreign currency exchange rate.
$JOY said its consolidated bookings in 3Q16 fell 17% to $527MM versus 3Q15, with original equipment orders falling 46% and service orders declining 12%. Current quarter bookings include a $40MM unfavorable impact from foreign currency exchange movements, a $21MM decrease for original equipment and a $19MM decrease for service bookings.
Mining equipment maker $JOY reported drop in 3Q16 earnings due to lower sales volumes, unfavorable product mix, lower manufacturing absorption, restructuring charges and merger costs . Net income fell to $0.13MM or breakeven per share from $51.34MM or $0.52 per share. Net sales dropped 26% to $586.55MM. Adjusted EPS decreased to $0.10 from $0.59.
$JOY said its BoD unanimously approved definitive merger agreement whereby Komatsu America, a unit of Tokyo, Japan-based Komatsu, will buy $JOY in transaction valued at about $3.7Bil, including $JOY's outstanding indebtedness. $JOY stockholders will get $28.30 per share in cash for each outstanding share held. The deal will close by mid-2017.
Mining solutions company $JOY said its BoD has approved an agreement under which Komatsu America Corp., a subsidiary of Tokyo-based Komatsu Ltd., will acquire $JOY for about $3.7Bil, including $JOY's outstanding indebtedness. Under deal terms, $JOY's stockholders will receive $28.30 per share in cash for each outstanding share held.
$ASB said it appointed Gale Klappa to its BoD. Klappa is a member of the BoD of $BMI and $JOY. He is also co-chair of the Milwaukee 7, a regional economic development initiative, vice chairman of the Metropolitan Milwaukee Association of Commerce (MMAC) and an executive committee member of the Greater Milwaukee Committee.
FBR & Co. analyst Lucas Pipes questions $JOY on the visibility it has relating to the sustainability of the bookings. CFO James Sullivan says that the company tries to highlight the bookings lumpiness in 2Q16 with the oil sands order and the longwall. Looking into 2H16, the company has prospects there. The new run rate of bookings is $680MM.