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Advantages Joy Global Sees as a Leading Mining Equipment Player


Nov. 20 2020, Updated 3:54 p.m. ET

Exponential technologies toward automated mining

The mining industry is undergoing a transformation toward automation. In simple terms, this means the removal of human labor from the mining process. The first type of automation is process and software automation. The second type of automation is an advanced form of applying robotic technology to mining vehicles and equipment.

Joy Global Business Systems (JBS) has systems in place that turn data into intelligence. It not only adopts different analytic programs but also has the ability to integrate an operating system to a miner’s enterprise resource planning platforms.

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Continuous research and development

JOY undertakes continuous research and development. This helps it to enhance its productivity as well as to incorporate more safety measures. Research and development expenses stood at $49 million, $41 million, and $36 million in 2013, 2014, and 2015, respectively.

JOY owns patents and trademarks for its technology in-build products and manufacturing methods. The company develops intellectual property and files for patent. According to management, this practice has helped JOY to differentiate its products from others’ products.

Acceptance of JOY’s products across the globe

The company’s equipment is mainly sold to large international global and regional mining companies. During 2015, one large customer accounted for 11% of JOY’s revenues.

As per 2015, JOY’s total revenues from the United States stood at 40%. Latin American revenues were 19%, Australian revenues were 16%, African revenues were 9%, Chinese revenues were 9%, and Eurasian revenues were 7%.

The global mining equipment industry consists of large multinational corporations. These include Caterpillar (CAT), Terex (TEX), Komatsu, Hitachi Construction Machinery, Sandvik, and Atlas Copco. These players have dominated the global mining equipment market share.

JOY is a part of the WisdomTree SmallCap Earnings ETF (EES) and accounts for 0.78% of the ETF’s total holdings. Investors in this ETF may benefit if JOY exhibits operational excellence in the weak and volatile market. Sanderson Farms (SAFM) and EP Energy Class A (EPE) are also among the top ten holdings of EES. They account for 1.0% and 0.84% of EES, respectively.


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