Recent bad-debt challenges at Chinese mining competitors Sany and Zoomlion could open the door for Joy to gain additional market share in China, a country that produces 50% of global coal and 30% of global iron ore output.
Joy’s emphasis on offering lifetime equipment management programs should increase its base business of aftermarket service sales.
The LeTourneau and Mining Technologies International deals smartly expand Joy’s product offerings into loading equipment and hard-rock underground mining. Read more
Roughly 60% of Joy’s sales are tied to coal mining, which faces severe regulatory headwinds in the U.S. and China.
Caterpillar’s Bucyrus acquisition and captive financing arm give it the unique combination of the world’s broadest product portfolio and the ability to offering financing incentives, which Joy cannot offer. We think this gives Caterpillar the upper hand in sales.
As commodity demand has receded, Joy’s customers have insourced a larger portion of their equipment servicing. Read more
We give Joy Global a Standard Stewardship Rating. It has maintained relatively high returns on invested capital (greater than 10% by the end of 2014) despite a 35% revenue decline during 2012-14. We are also impressed that the company has managed to Read more
Milwaukee-based Joy Global manufactures electric shovels, dragline excavators, drills, and other mining equipment for use in surface (through its P&H brand) and underground Read more