We would like to highlight Bucyrus International, Inc. (NASDAQ: BUCY). The company designs, manufactures mining equipment for the extraction of coal, copper, oil sands, iron ore and other minerals in mining centers throughout the world. In addition to the manufacture of original equipment, the Company also provides the aftermarket replacement parts and service for equipment. The Company operates in two business segments: surface mining and underground mining. The Company’s manufacturing facilities include Australia, China, Germany, Poland and the United States, and service and sales centers include Australia, Brazil, Canada, Chile, China, England, India, Mexico, Peru, Russia, South Africa and the United States.
In the company’s recent news,
Bucyrus International, Inc. (BUCY), a leading manufacturer of heavy earthmoving equipment for surface and underground mining, reported better than expected second quarter results yesterday after the close. Revenues rose 66% year-over-year to $621.0 million vs. analysts’ estimates of $583.0 million. Net income soared 124% to $62.3 million, or 84 cents per diluted share, significantly beating analysts’ expectations by 18 cents per share.
Bucyrus is benefiting globally from the commodities boom. Strong demand and high prices for coal and iron ore provide clear visibility for the strength of Bucyrus’ business in the near future. New orders during the quarter increased 69% year-over-year to $776.5 million, and total backlog increased 51% to $2.17 billion.
Shares of BUCY closed at $59.27 yesterday and have traded in a range of $28.42 to $79.50 during the past year. Shares have declined 25% since hitting a 52-week high on June 17. The recent pullback mirrors the trading of equities across the entire coal sector. The coal ETF (KOL) is 26% off its high hit on June 19. The early pre-market bid for BUCY suggests a 7% gap higher on the open today. Shares of Joy Global, Inc. (JOYG), a Bucyrus competitor in the earth-moving space, could benefit in sympathy with a pop in BUCY. Joy Global reports third quarter earnings at the end of August.
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Forward-Looking Statement:
This release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All forward-looking statements are inherently uncertain as they are based on current expectations and assumptions concerning future events or future performance of the company. Readers are cautioned not to place undue reliance on these forward-looking statements, which are only predictions and speak only as of the date hereof. Risks and uncertainties applicable to the company and its business could cause the company's actual results to differ materially from those indicated in any forward-looking statements.
