Joy Global Inc. Updates Full Year Guidance
Friday, December 7th, 2007
Joy Global Inc. a worldwide leader in high-productivity mining solutions, today reported that, based on preliminary reviews, it will record tax adjustments in its fourth quarter that will increase the quarter’s book tax rate to approximately 51 percent and the book tax rate for the full year to approximately 38 percent.
The majority of the increase in the book tax rate relates to certain discrete tax items. These include taxes on dividends received from foreign subsidiaries during the quarter not previously forecasted, the resolution of an R&D study which resulted in the write-off of pre-bankruptcy R&D credits, and a reserve added following the quarterly evaluation of a previously disclosed contingent tax liability in South Africa. The effect of these discrete tax items will be a charge to fourth quarter and full year earnings of $18 million or $.16 per fully diluted share.
Reflecting good operational results for the quarter, the company is reaffirming its full year revenue guidance of $2.50 to $2.55 billion. With the changes in taxes described above, earnings per share will be $2.49 to $2.54 rather than the previous guidance of $2.65 to $2.70.
“Aside from these tax items, we will report strong operational results from our two businesses,” said Mike Sutherlin, President and CEO. “These results will show progress in the operational and supplier issues we have discussed on previous earnings calls, the initial signs of improvement in the U.S. coal market, and the continued strength in all of our international markets.”
The company will provide further details on these tax issues in its fourth quarter earnings release, scheduled for Wednesday, December 19th. Quarterly Conference Call
The company’s fourth quarter and full year results will be released on December 19, 2007. Management will host a quarterly conference call the same morning at 11:00 AM EST. Investors and interested parties may participate on the call by dialing 800-649-5127 in the U.S. and 706-679-0637 elsewhere, both with access code #25403344. A rebroadcast of the call will be available until the close of business on January 31, 2007 by dialing 800-642-1687 or 706-645-9291, access code #25403344. Finally, a replay of the webcast will be accessible until January 31, 2008 through the Investor Relations website at (http://www.joyglobal.com/investorrelations/confcalls.jsp).