UPDATE 3-Joy Global signals mining capex rebound; shares rise

* Q3 EPS $1.13 vs est $1.03

* Q3 sales down 11 pct, below Street

* Raises 2010 earnings view

* Expects customer spending to rise

* Joy Global shares rise 7 pct; Nasdaq up 2.6 pct
(Recasts; adds details, updates share movement)

BANGALORE, Sept 1 (BestGrowthStock) – Joy Global Inc (JOYG.O: )
posted a better-than-expected quarterly profit and raised its
full-year earnings view as miners, eyeing a recovery in demand,
resume spending on mining equipment.

Shares of the company, known for its giant shovels and
draglines, rose 7 percent to $60.33 in mid-day trade on Nasdaq.
About 3 million shares changed hands, twice the 10-day moving
average volume of the stock.

Joy Global, which along with rival Bucyrus International
Inc (BUCY.O: ) holds about 80 percent share of the global mining
equipment market, said it expects capital spending for the
mining industry to be up about 30 percent this year and rise by
another 10 percent in 2011.

The company’s bullish forecast is in contrast to its
cautious view in June, when the market was gripped by fears of
project cancellations from large customers following the
European debt sovereign crisis and the Australian super-profit
tax worry.

Global mining is now operating at capacity utilization
rates of more than 90 percent, resulting in demand for
additional capacity and driving prices of mining equipment, Joy
Global said on Wednesday.

Over the last three months, Joy Global shares have gained
10 percent in value and Bucyrus shares 7 percent, outperforming
the broader Dow Jones US Industrials index (.DJUSIN: ), which has
shed 4 percent.

While Joy Global and Bucyrus have enjoyed market dominance
for years, they might see increased competition with
earth-moving equipment giant Caterpillar Inc (CAT.N: ) set to
launch a line of mining shovels. [ID:nN01118847]

For 2010, Milwaukee-based Joy Global now expects earnings
of $4.10-$4.15 a share, up from $3.85-$4.00 a share earlier. It
also narrowed full-year revenue forecast to $3.35-$3.4 billion,
from $3.3-$3.4 billion.

The company said new orders more than doubled to $973
million for the third quarter ended July 30.

Backlog increased to $1.8 billion at the end of the quarter
from $1.5 billion as of Oct. 30, 2009.

The company maintained its operating profit margin at 20
percent, helped by cost controls.
(Reporting by Bijoy Koyitty in Bangalore; Editing by
Unnikrishnan Nair, Anne Pallivathuckal)

UPDATE 3-Joy Global signals mining capex rebound; shares rise