Joy Global to be acquired by Komatsu (KMTUY) for $28.30 per share

Joy Global (JOY) to be acquired by Komatsu (KMTUY) for $28.30 per share. (21 July 2016)

  

Joy Global (JOY) announced that its Board of Directors has unanimously approved a definitive merger agreement under which Komatsu America Corp, a subsidiary of Komatsu (KMTUY), will acquire Joy Global in a transaction valued at ~$3.7 billion, including Joy Global's outstanding indebtedness.

• Under the terms of the agreement, Joy Global stockholders will receive $28.30 per share in cash for each outstanding share of common stock held. 
• Komatsu intends to operate Joy Global as a separate subsidiary of Komatsu and retain the strength of the Joy Global brand names.
• The transaction is expected to close by mid-2017.

-=Joy Global (JOY) reported earnings Thur 2 June 2016 (b/o)

Joy Global beats by $0.10, reports revs in-line; sees FY16 EPS and revs at lower end of prior guidance:

• Reports Q2 (Apr) earnings of $0.09 per share, $0.10 better than the Capital IQ Consensus of ($0.01); revenues fell 25.7% year/year to $602 mln vs the $605.64 mln Capital IQ Consensus.
  • Bookings $681 million, down 9 percent from a year ago
  • Equipment bookings $167 million, up 12 percent from a year ago
  • Service bookings $514 million, down 14 percent from a year ago
• Co issues revises guidance for FY16, sees EPS at low end of prior guidance of $0.10-0.50 vs. $0.20 Capital IQ Consensus Estimate; sees FY16 revs at low end of prior guidance of $2.4-2.6 bln vs. $2.46 bln Capital IQ Consensus Estimate.

=Joy Global (JOY) reported earnings on Wed 16 Dec 2015 (before open)

** charts before earnings **





 ** charts after earnings **

Joy Global reports EPS in-line, beats on revs; guides FY16 EPS below consensus, revs below consensus; cuts quarterly dividend to $0.01 from $0.20 prior :

• Reports Q4 (Oct) adj earnings of $0.43 per share, excluding non-recurring items, in-line with the Capital IQ Consensus of $0.43; revenues fell 23.6% year/year to $865.6 mln vs the $791.27 mln Capital IQ Consensus.
  • Oversupplied commodity markets drove customer capital expenditures down approximately 18 percent year-over-year
  • Fourth quarter bookings of $617 million, down 21 percent; full year bookings of $2.7 billion, down 25 percent from a year ago
• Co issues downside guidance for FY16, sees adj EPS of $0.10-0.50 vs. $1.10 Capital IQ Consensus Estimate; sees FY16 revs of $2.4-2.6 bln vs. $2.76 bln Capital IQ Consensus Estimate.
• Dividend: The company announced that its Board of Directors declared a dividend of $ 0.01 per share, which is a reduction from $0.20 per share.
  • If maintained, this action would reduce annual cash outlay by ~$75 million.