Joy Global has seen its largest spike since 2011 on the back
of market takeover rumours.
The mining machinery manufacturer’s price rocketed from US$
60.23 to US$65.98 per share yesterday, a 9.5 per cent leap.
According to Bloomberg the company refused to comment on the
takeover rumours in the market.
The share price movement is welcome news for the company,
which has seen a series of poor years financially.
Earlier this year Joy announced a large drop year on year for its first quarter, falling 65 per cent between the two first periods of the
Highlighting the shrinking demand for capital equipment in
the mining industry, Joy recorded a 42.7 per cent drop in original equipment orders
compared to the first quarter of 2013, with demand falling from US $436.2
million to US $250.1 million.
This fall was felt most keenly
in underground equipment, which saw close to a 24 per cent slump in sales, dropping
from US $598.8 million in January 2013 to US $451 million this year.
Surface mining equipment did
not fare much better, recording a 13.8 per cent decline year on year, with bookings
slumping from US $502.9 to US $433.5 million. Joy added that surface mining
equipment was hit by an additional US $16 million fall due to the impact of
foreign exchange compared to last year.
Much of this downward movement
was due to decreased demand in Australia and North America, although the
machinery did see an increase in bookings across South American, Eurasia and