Joy Global (Nasdaq: JOYG) is a manufacturer of mining equipment, and their fourth quarter results show the company has a solid ending to the year, and a decent 2009 in general.
Earnings per share for the year gained a nice 28 percent for 2009, and that was net sales increasing by only 5 percent.
What that tells us is Joy Global had some strong backlog o forders which helped them during these more difficult economic times, where overall mining equipment orders have been drying up.
Another positive for the company is they greatly increase their supply chain management, and were able to streamline costs nicely, which could set them up for nice profits going forward once a real recovery begins to happen.
Operating margins for 2009 endd at 20 percent, a great performance when bookings were down for mining equipment. Again, that was a testament to great cost-cutting measures.
Even with all the backlog and great performance, things remain tenuous for the time, as orders for new mining equipment have plunged by 74 percent from last year at the same time, making it tough going forward into 2010 for Joy Global.
If it wasn't for aftermarket products things would have been far more dismal, as original equipment bookings were almost non-existent for the company over the last year.
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