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A Look at Joy Global’s Surface Mining Segment

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About JOY’s Surface Mining segment

During 2015, Joy Global’s (JOY) Surface Mining segment contributed 46% to the company’s total revenues. Its operating margin stood at 11.5% in 2015. JOY’s surface mining equipment is marketed using the P&H products trademark.

Under its Surface Mining segment, JOY provides aftermarket parts and accessories, air-ends, blowers, dryers, filters, fluid handling systems, golf vehicles, and power tools. P&H is the world’s largest producer of electric mining shovels, loaders, rotary blasthole drills, and walking draglines for open-pit mining operations.

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The Surface segment’s revenues fell 18% in 2015. This was on account of a 42% fall in original equipment sales, at $210 million. A fall in original equipment sales was witnessed in all regions except for North America and China. JOY’s Service segment’s revenues also fell. North America led the fall in Service sales.

JOY has facilities in Australia, Brazil, Canada, Chile, China, Peru, South Africa, and the United States. Its sales offices are located in India, Mexico, Russia, and the United Kingdom.

Illinois Tools Work (ITW), Caterpillar (CAT), Terex (TEX), and Komatsu (KMTUY) are some of the major companies in the mining equipment industry.

JOY is a part of the VanEck Vectors Coal ETF (KOL) and accounts for 4.7% of the ETF’s total holdings. Investors in this ETF may benefit if JOY exhibits operational excellence in the weak and volatile market. Tech Resources (TCK) and United Tractors (PUTKF) are also among the top ten holdings of KOL, accounting for 10.1% and 7.3% of the ETF, respectively. JOY is also a part of the SPDR S&P 500 ETF (SPY).

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