Joy Global stock declines after rumors of possible slowdown in businessWisconsin Business
-- A maker of mining equipment in Milwaukee saw its stock go down by five-percent yesterday, after it warned of a possible slowdown.
MILWAUKEE - A maker of mining equipment in Milwaukee saw its stock go down by five-percent yesterday, after it warned of a possible slowdown.
Joy Global reported a 32-percent increase in its second-quarter earnings. But its stock closed down by more than three-dollars a share, after CEO Mike Sutherlin said Joy Global has started to cut costs. He said international markets for mining have slowed down. And he says coal mining has been shaky, as U.S. coal suppliers have struggled to compete with cheaper natural gas. Joy Global would consider closing plants and moving production to lower-cost facilities if market conditions get “extremely soft.”
But analyst Charles Brady of BMO Capital Markets says things shouldn’t get that bad. He said if the firm must reduce production, outsourcing would be the first thing affected. Joy Global recently moved some work from Australia to Milwaukee because of excess production demand in Australia. Brady said things aren’t that terrible – and he does not expect Joy Global to reduce its permanent workforce at any of its plants.