Joy Global Inc. (JOY) saw its loss narrow to $8.45 million, or $0.09 a share for the quarter ended Oct. 28, 2016. In the previous year period, the company reported a loss of $1,315.82 million, or $13.49 a share. On the other hand, adjusted net income for the quarter stood at $16.60 million, or $0.17 a share compared with $41.70 million or $0.43 a share, a year ago.
Revenue during the quarter dropped 24.15 percent to $656.56 million from $865.57 million in the previous year period. Gross margin for the quarter contracted 2 basis points over the previous year period to 23.20 percent.
Operating income for the quarter was $13.17 million, compared with an operating loss of $1,343.04 million in the previous year period.
However, the adjusted operating income for the quarter stood at $42.20 million compared to $75 million in the prior year period. At the same time, adjusted operating margin contracted 224 basis points in the quarter to 6.43 percent from 8.66 percent in the last year period.
"In late fiscal year 2016, we saw the beginning of global commodity markets rebalancing as supply surpluses started to be absorbed and pricing improved from decade low levels," said Ted Doheny, president and chief executive officer. "Despite these improvements, the mining industry continues to defer capital and maintenance spending, which is reflected in our quarter and full year bookings levels, although the year-over-year rate of decline in service bookings has lessened. Our team once again delivered financial results in line with our expectations, with continued solid cash generation, cost reduction ahead of target and steady advancement of our growth strategies."
Operating cash flow drops significantly
Joy Global Inc. has generated cash of $253.64 million from operating activities during the year, down 28.62 percent or $101.69 million, when compared with the last year.
Cash flow from investing activities was $9.65 million from investing activities during the year as against cash outgo of $181.47 million in the last year.
The company has spent $84.69 million cash to carry out financing activities during the year as against cash outgo of $324.96 million in the last year period.
Cash and cash equivalents stood at $276.71 million as on Oct. 28, 2016, up 168.95 percent or $173.82 million from $102.88 million on Oct. 30, 2015.
Working capital decreases marginally
Joy Global Inc. has witnessed a decline in the working capital over the last year. It stood at $1,120.50 million as at Oct. 28, 2016, down 3.20 percent or $37.02 million from $1,157.52 million on Oct. 30, 2015. Current ratio was at 2.45 as on Oct. 28, 2016, up from 2.27 on Oct. 30, 2015.
Debt comes down
Joy Global Inc. has recorded a decline in total debt over the last one year. It stood at $1,007.03 million as on Oct. 28, 2016, down 7.35 percent or $79.93 million from $1,086.96 million on Oct. 30, 2015. Total debt was 29.39 percent of total assets as on Oct. 28, 2016, compared with 29.28 percent on Oct. 30, 2015. Debt to equity ratio was at 0.73 as on Oct. 28, 2016, down from 0.77 as on Oct. 30, 2015.
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