Joy Global sees encouraging signs but not expecting 'near term impact' The company CEO sees encouraging signs in the market but the impact of the turn in conditions will not impact the company in the 'near term.' "I think that we are seeing some encouraging but early signs of market improvement; however.. the impact on us is more likely to be on the horizon and around the corner so we don't expect it to have the near term impact and there for we'll continue to focus on reducing our cost and streamlining our business and that's going to allow us to respond better to those upside opportunities."
Joy Global downgraded to Neutral from Buy at BofA/Merrill BofA/Merrill downgraded Joy Global to Neutral ahead of the March 5 report given challenging end markets. The firm expects consensus estimates to continue to move lower based on the weaker start to the year, deteriorating order trends, and FX headwinds. BofA/Merrill expects Joy to accelerate cost cutting but needs to do more capacity right-sizing and SG&A in order to sustain trough earnings. Price target cut to $47 from $55.
Joy Global says reducing cost curve is company's priority for customers Joy Global says focused on growing service business. Looking to accelerate savings on service business for 2015. Company focuses on life cycle management of equipment. Joy Global developing new products in service sector to allow customers to reduce costs. Sees opportunity in tough market to build service business. Seeing better visibility on rebuilds. Comments taken from Barclays Capital Industrial Select Conference.