Joy Global Inc.
May 29, 2008

Joy Global Inc. Announces Fiscal 2008 Second Quarter Operating Results

* Q2 orders of $1.2 billion, May 29, 2008 (PrimeNewswire via COMTEX News Network) -- a record high - and a 69% increase over Fiscal 2007's second quarter * Q2 sales of $843 million, up 34% over the prior-year period * EPS of $0.66, inclusive of $0.20 in charges related to a previously announced contract termination and to Continental purchase accounting * Cash flow from operations of $107 million, up $28 million from the prior year period

MILWAUKEE, May 29, 2008 (PRIME NEWSWIRE) -- Joy Global Inc. (Nasdaq:JOYG), a worldwide leader in high-productivity mining solutions, today reported results for the 2008 fiscal second quarter ended May 2, 2008. Orders were $1.2 billion, up 69% from $728 million in the prior-year period on strengthened conditions in the U.S. coal market and continued growing demand from the international markets. Net sales for the 2008 second quarter were $843 million compared to $629 million in the prior-year period, an increase of 34%.

Second quarter 2008 operating results included:



                                                          Earnings
                                                          per fully
                                              Dollars      diluted
                                             (millions)     share
                                            -----------  -----------

 Net Income                                 $      72.1  $      0.66

 Contract termination, net of tax           $      14.7  $      0.13

 Purchase accounting, net of tax            $       7.4  $      0.07

Second quarter 2007 operating results included net income of $77.6 million and earnings of $0.70 per diluted share.

"I am very pleased with our results for the second quarter," said Mike Sutherlin, president and chief executive officer of Joy Global, Inc. "The quarter's orders were again at record levels for both surface and underground segments, and overall orders exceeded $1 billion for the first time in the company's history. These order rates have been driven by exceptionally strong fundamentals in all of the markets we serve and by our customers' preference for our equipment and services. We are benefiting from previous capacity and process investments, which has allowed us to increase revenues by 34% from last year. Excluding the contract termination and amortization charges that do not affect the fundamental earnings power of our business, our earnings performance was solid and in line with our internal expectations. Our cash generating capability - even as we grow this business - continues to be impressive, and cash from operations exceeded $100 million this quarter. Our ongoing focus on growing capacity and improving efficiency should enable us to meet the expectations of our customers and shareholders as our markets continue to improve."

Second Quarter Operating Results

Bookings in the 2008 second quarter totaled $1.2 billion, up 69%, reflecting order strength in both the original equipment and aftermarket segments. Original equipment orders more than doubled, up 119%, and aftermarket orders were up 30% from last year. Excluding Continental Global Group ("Continental"), which does not have a prior-year comparable under our ownership, original equipment orders grew 102%, and aftermarket orders increased 22%.

Underground orders at Joy increased 31% to a record $589 million, led by order rates that more than doubled in the Americas, Eurasia and South Africa. Lower order rate growth in other regions is the result of normal lumpiness, especially in the international markets, and does not change the Company's outlook.

Surface orders at P&H more than doubled to a new record level of $557 million, led by North and South America shovel orders booked for coal, copper and iron ore markets.

The business associated with the Continental acquisition contributed $87 million to bookings in the 2008 second quarter despite the inclusion of results for only 11 of the 13 reporting weeks in the Company's second fiscal quarter, and included the first system order to Russia. These results demonstrate the benefit of selling integrated solutions to established Joy underground and P&H surface customers.

Backlog increased by $990 million from a year ago to $2.4 billion - including $133 million of backlog acquired with Continental.

Sales for the quarter grew 34% percent to $843 million, reflecting a 59% increase in original equipment sales and a 22% increase in aftermarket sales compared to the prior-year period. Excluding the results of Continental, which was acquired during the second quarter, revenue growth was 22% compared to last year, with original equipment sales up 40% and aftermarket revenues up 14%. P&H surface sales were up 37% year-over-year to $365 million, reflecting the contribution of prior capacity investments and on-going internal process improvements. Joy underground sales increased 12% to $406 million. Although the underground order rate for original equipment improved significantly compared to the prior-year period, order-to-delivery lead time delayed the impact on shipments into subsequent quarters. The Continental acquisition added $73 million of sales in the 2008 second quarter.

Operating income decreased to $114 million, or 13.6% of sales, in the 2008 second quarter, including pre-tax charges of $21.0 million related to the early termination of a maintenance and repair contract and purchase accounting charges of $11.1 million from the Continental acquisition. This compares to operating income of $122 million, or 19.3% of sales, in the prior-year period. The 2008 second quarter also incorporated lower overall margins from the new Continental business. The remaining decline in margins is primarily at Joy Mining Machinery and due to an exceptionally strong result in last year's comparable quarter. Favorable adjustments on a major project close-out added to Joy's prior-year quarter operating profit margin, pushing it to an exceptional 22.5%. Joy's current margin performance of 20.4% was in line with internal expectations, and reflects its continued strong earnings performance. Operating profit margins at P&H before the contract termination charges were essentially flat with last year, resulting from higher expenses associated with engineering on an Ultra Class dragline and a mobile in-pit crusher, coupled with expenses related to this summer's start-up of the next factory on the Tianjin, China campus. Excluding purchase accounting charges, Continental delivered operating profit margins of 12.0%, consistent with internal expectations.

Selling, administrative and product development expense in the quarter totaled $108 million, or 12.8% of sales, compared with $89 million, or 14.1% of sales, in the second quarter of last year. In addition to the engineering and China start-up expenses noted above, other significant sources of expense increases included $8.4 million related to the Continental acquisition, $2.4 million of unfavorable foreign exchange impact, and $2.2 million of increased incentive-based compensation.

The effective income tax rate of 33.5% increased from 31.6% in the corresponding quarter last year. The tax rate increased year-over-year due to the geographic mix of earnings.

In the 2008 second quarter, the Company repurchased shares for a cost of $5.2 million. Since the program's initiation, the Company has repurchased shares for a total cost of $812.3 million. Although the Company prioritizes the use of cash first for capacity expansion and then for acquisitions, it also believes it has a long-term need to return excess cash to shareholders and will continue its buyback program through the remainder of this calendar year.

Other Financial Matters

Cash flow from operations was $107 million in the 2008 second quarter compared to $79 million in the prior-year period. Net working capital was $845 million at the end of the 2008 second quarter, which included $48 million associated with the Continental acquisition. The improvement in working capital performance was driven primarily by increased advanced payments associated with strong original equipment bookings.

Capital spending in the 2008 second quarter was slightly less than $23 million, or 2.7% of sales, compared to $12 million, or 1.9% of sales, in the prior-year quarter. The Company anticipates capital spending in the range of 3.5% - 4.0% of sales in each of the next few years as it continues to increase its core manufacturing capacity and to extend its field service capabilities. The use of cash for capital projects, however, may vary from expected spending levels on a quarterly basis due to the timing and cash flow requirements of specific projects.

During the 2008 second quarter, Joy Global Inc. acquired Continental, a worldwide leader in conveyor systems for bulk material handling in mining and other industrial applications. The purchase price of $254 million, net of cash acquired and debt assumed, was funded through cash, the Company's credit facility and a new $175 million term loan supplement to Joy Global's existing credit facilities.

Continued Positive Long-Term Global Mining Outlook

The Company continues to benefit from unprecedented demand for its underground and surface mining equipment in response to the strong demand for coal, copper, iron ore and oil sands. All of these major commodity markets that the Company serves have extremely thin supply surpluses, or most often, significant supply deficits, as commodity supply increases to date have been unable to match commodity demand growth. In thermal coal markets, stockpiles at power generators remain at extremely low levels, and the rebuilding of inventories will add to the supply deficit. The Company believes the gap between coal demand and supply could reach 60 to 100 million tons this year. Industry forecasters expect steel demand to continue growing at 5% - 6%, led by growth of 10% in China demand. Both metallurgical coal and iron ore remain in significant deficit, and some projections indicate that steel supply could be 20 - 30 million tons less than demand this year due to shortages of raw materials. The U.S has become the swing supplier to the international thermal and metallurgical coal markets, and export demand and prices are redefining the domestic market. Due to the renewed strength of this market, the Company's strongest growth in its second quarter original equipment orders was generated in North America for both surface and underground equipment. Copper suppliers have not been able to produce surplus to date, and announced major expansion projects will add no more than projected demand growth over the next four to five years. The expected return of U.S. copper demand over this period will add pressure to supplies. The Company also expects oil sands growth to continue as the major oil companies more aggressively seek additional and unconventional sources of oil.

The Company believes that commodity demand will continue to grow, led by the growth from the emerging markets in general, and from China and India in particular, as these countries continue to industrialize. Based on the status of existing expansion projects and industry projections, the Company expects that the commodity markets will generally remain in supply deficit for the next three to five years or longer. The Company believes that its customers will require significant additional capital expenditures to add and accelerate mine expansion projects to enable supply to catch up with demand and ultimately will require a higher sustaining level of capital expenditures to be able to keep up with expected long-term commodity demand growth. The rapid and unprecedented escalation in commodity prices within the last year suggests that this outlook is generally held both by the customers that use the Company's equipment and by consumers of the commodities that the Company's equipment mines.

Updated Forward Guidance for Fiscal Year 2008

"The fundamentals and outlook for our markets are stronger today that at any other time since this growth period began in 2003," Sutherlin continued. "Despite orders that have set new company records multiple times over the past year, our list of qualified prospects continues to grow and indicates that our markets will continue to strengthen going forward. In response, we will continue our program of expanding realizable capacity by focusing on internal process improvements and building new capacity in low-cost locations.

"Our ability to increase top- and bottom-line performance in the second half of our fiscal year 2008 is limited by constraints of capacity and order to delivery lag times. Joy has been ramping up its domestic capacity to respond to the dramatic improvement in this market, and these benefits should begin to be realized in our 2008 second half. The first P&H factory on our Tianjin, China campus will be completed this summer. We project that it will take six to nine months to ramp up this factory to full production, and therefore, do not expect it to contribute significantly to revenue or earnings during our second half. In addition to internal capacity, we are also constrained by the ability of our supply chain to respond in time to impact this fiscal year.

"We believe that the positive factors outlined above generally outweigh the constraints, and therefore we are raising our full-year revenue guidance from the previous $3.1 - $3.3 billion to $3.3 - $3.4 billion and our earnings per share guidance from $2.96 - $3.22 to $3.15 - $3.30 per fully diluted share. This updated guidance reflects the previously announced pre-tax charges as well as the ongoing outlook for our business fundamentals that resulted from the roll-forward of our regular quarterly forecasting process."

Quarterly Conference Call

Management will host a quarterly conference call to discuss the company's second quarter results to be held at 11:00 AM EDT on May 29, 2008. Investors and interested parties may participate on the call by dialing 800-649-5127 in the U.S. and 706-679-0637 elsewhere, both with access code #46548299. A rebroadcast of the call will be available until the close of business on June 25, 2008 by dialing 800-642-1687 or 706-645-9291, access code #46548299. Finally, a replay of the webcast will be accessible until June 25, 2008, through the Investor Relations section of our web site (http://investors.joyglobal.com/events.cfm).

About Joy Global Inc.

Joy Global Inc. is a worldwide leader in manufacturing, distributing and servicing equipment for surface mining, through its P&H Mining Equipment division; underground mining, through its Joy Mining Machinery division; and bulk material conveyor systems, through its Continental Crushing & Conveying division.

Forward Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Terms such as "anticipate," "believe," "estimate," "expect," "indicate," "may be," "objective," "plan," "predict," "will" "will be," and the like are intended to identify forward-looking statements. The forward-looking statements in this press release are based on our current expectations and are made only as of the date of this press release. We undertake no obligation to update forward-looking statements to reflect new information. We cannot assure you the projected results or events will be achieved. Because forward-looking statements involve risks and uncertainties, they are subject to change at any time. Such risks and uncertainties, many of which are beyond our control, include, but are not limited to: (i) risks of international operations, (ii) risks associated with acquisitions, (iii) risks associated with indebtedness, (iv) risks associated with the cyclical nature of our business, (v) risks associated with the international and U.S. coal and copper commodity markets, (vi) risks associated with access to major purchased items, such as steel, castings, forgings and bearings, (vii) risks associated with labor markets and other risks, uncertainties and cautionary factors set forth in our public filings with the Securities and Exchange Commission.



                                     JOY GLOBAL INC.
                        SUMMARY OF CONSOLIDATED STATEMENT OF INCOME
                                       (Unaudited)
                          (In thousands except per share amounts)

                           Quarter Ended          Six Months Ended
                      ----------------------  ----------------------
                        May 2,     April 27,    May 2,     April 27,
                         2008        2007        2008        2007
                      ----------  ----------  ----------  ----------

 Net sales            $  843,133  $  629,162  $1,483,462  $1,189,628
 Costs and expenses:
  Cost of sales          620,907     419,990   1,049,337     805,589
  Product development,
   selling and
   administrative
   expenses              107,953      89,013     209,489     170,863
  Other (income)
   expense                    18      (1,418)       (790)     (2,383)
                      ----------  ----------  ----------  ----------
 Operating income        114,255     121,577     225,426     215,559

 Interest income
  (expense), net          (5,555)     (8,043)     (9,805)    (12,485)
 Reorganization items       (292)       (130)     (2,176)       (280)
                      ----------  ----------  ----------  ----------
 Income from continuing
  operations before
  income taxes           108,408     113,404     213,445     202,794

 Provision for income
  taxes                  (36,300)    (35,825)    (71,426)    (65,550)
                      ----------  ----------  ----------  ----------

 Income from continuing
  operations              72,108      77,579     142,019     137,244
 Income from
  discontinued
  operations, net of
  taxes                       --          --       1,141          --
                      ----------  ----------  ----------  ----------

 Net income           $   72,108  $   77,579  $  143,160  $  137,244
                      ==========  ==========  ==========  ==========
 Basic earnings per
  share
  Income from
   continuing
   operations         $     0.67  $     0.71  $     1.32  $     1.22
  Income from
   discontinued
   operations                 --          --        0.01          --
                      ----------  ----------  ----------  ----------
  Net income          $     0.67  $     0.71  $     1.33  $     1.22
                      ==========  ==========  ==========  ==========

 Diluted earnings per
  share
  Income from
   continuing
   operations         $     0.66  $     0.70  $     1.30  $     1.21
  Income from
   discontinued
   operations                 --          --        0.01          --
                      ----------  ----------  ----------  ----------
  Net income          $     0.66  $     0.70  $     1.31  $     1.21
                      ==========  ==========  ==========  ==========

 Dividends per share  $     0.15  $     0.15  $     0.30  $     0.30
                      ==========  ==========  ==========  ==========

 Weighted average
  shares outstanding:
  Basic                  108,255     109,420     108,041     112,049
                      ==========  ==========  ==========  ==========
  Diluted                109,268     110,719     109,121     113,384
                      ==========  ==========  ==========  ==========

 Note - for complete information, including footnote disclosures,
 please refer to the Company's Form 10-Q filing with the SEC.

                                  JOY GLOBAL INC.
                           SUMMARY CONSOLIDATED BALANCE SHEET
                                   (In thousands)


                                                May 2,     October 26,
                                                 2008         2007
                                              ----------   ----------
                                              (Unaudited)
 ASSETS
 Current assets:
  Cash and cash equivalents                   $  233,334   $  173,248
  Accounts receivable, net                       652,861      560,242
  Inventories                                    859,092      727,360
  Other current assets                            92,943       76,945
                                              ----------   ----------
   Total current assets                        1,838,230    1,537,795

 Property, plant and equipment, net              284,993      234,029
 Other intangible assets, net                    204,742       62,932
 Goodwill                                        129,963       16,784
 Deferred income taxes                           236,091      248,139
 Prepaid benefit cost                              8,604          779
 Other assets                                     31,560       34,445
                                              ----------   ----------
   Total assets                               $2,734,183   $2,134,903
                                              ==========   ==========



 LIABILITIES AND SHAREHOLDERS' EQUITY
 Current liabilities:
  Short-term notes payable, including current
   portion of long-term obligations           $   19,357   $      240
  Trade accounts payable                         253,963      199,198
  Employee compensation and benefits              75,623       59,490
  Advance payments and progress billings         472,313      324,102
  Accrued warranties                              49,821       49,382
  Other accrued liabilities                      121,832      121,127
                                              ----------   ----------
   Total current liabilities                     992,909      753,539

 Long-term obligations                           567,312      396,257

 Other non-current liabilities                   344,055      261,113

 Shareholders' equity                            829,907      723,994
                                              ----------   ----------

   Total liabilities and shareholders' equity $2,734,183   $2,134,903
                                              ==========   ==========

    Note - for complete information, including footnote disclosures,
      please refer to the Company's Form 10-Q filing with the SEC.

                                   JOY GLOBAL INC.
                              SUPPLEMENTAL FINANCIAL DATA
                                     (Unaudited)
                                   (In thousands)

                          Quarter Ended          Six Months Ended
                      ----------------------  ----------------------
                        May 2,     April 27,    May 2,     April 27,
                         2008        2007        2008        2007
                      ----------  ----------  ----------  ----------
 BREAKDOWN OF SALES
  REVENUE:

 Net Sales By
  Operation:
  Underground Mining
   Machinery          $  405,504  $  363,179  $  756,414  $  690,300
  Surface Mining
   Equipment             364,668     265,983     654,087     499,328
  Crushing & Conveying    95,230          --     112,098          --
  Eliminations           (22,269)         --     (39,137)         --
                      ----------  ----------  ----------  ----------
  Total Sales By
   Operation          $  843,133  $  629,162  $1,483,462  $1,189,628
                      ==========  ==========  ==========  ==========
 Net Sales By Product
  Stream:
  Aftermarket
   Revenues           $  515,759  $  423,823  $  907,980  $  757,407
  Original Equipment     327,374     205,339     575,482     432,221
                      ----------  ----------  ----------  ----------
  Total Sales By
   Product Stream     $  843,133  $  629,162  $1,483,462  $1,189,628
                      ==========  ==========  ==========  ==========
 Net Sales By
  Geography:
  United States       $  430,258  $  346,407  $  719,622  $  636,463
  Rest of World          412,875     282,755     763,840     553,165
                      ----------  ----------  ----------  ----------
  Total Sales By
   Geography          $  843,133  $  629,162  $1,483,462  $1,189,628
                      ==========  ==========  ==========  ==========

 OPERATING INCOME BY
  SEGMENT:

  Underground Mining
   Machinery          $   82,762  $   81,685  $  145,517  $  139,811
  Surface Mining
   Equipment              42,773      47,491      98,845      90,513
  Crushing & Conveying     1,957          --       3,936          --
  Corporate               (8,916)     (7,599)    (16,572)    (14,765)
  Eliminations            (4,321)         --      (6,300)         --
                      ----------  ----------  ----------  ----------
  Total Operating
   Income             $  114,255  $  121,577  $  225,426  $  215,559
                      ==========  ==========  ==========  ==========

 DEPRECIATION AND
  AMORTIZATION BY
  SEGMENT:

  Underground Mining
   Machinery          $    7,318  $    8,106  $   14,842  $   16,481
  Surface Mining
   Equipment               4,621       3,891       9,309       7,712
  Crushing & Conveying    12,861          --      13,995          --
  Corporate                    8          18          18          36
  Eliminations            (1,131)         --      (2,265)         --
                      ----------  ----------  ----------  ----------
  Total Depreciation
   And Amortization   $   23,677  $   12,015  $   35,899  $   24,229
                      ==========  ==========  ==========  ==========

 CASH FLOW DATA:

  Decrease (Increase)
   in Net Working
   Capital Items      $   19,913  $  (10,024)     22,793    (106,861)
  Property, Plant and
   Equipment Acquired     22,729      11,663      38,479      23,805
  Cash Interest Paid       1,271       2,789      14,279       4,209
  Cash Taxes Paid         66,122      13,300      87,714      28,600

 BOOKINGS DATA:

  Underground Mining
   Machinery          $  588,975  $  451,246  $1,104,948  $  710,535
  Surface Mining
   Equipment             556,507     276,686     910,489     582,800
  Crushing & Conveying   118,175          --     137,422          --
  Eliminations           (31,437)         --     (50,684)         --
                      ----------  ----------  ----------  ----------
  Total Bookings      $1,232,220  $  727,932  $2,102,175  $1,293,335
                      ==========  ==========  ==========  ==========

                                      Amounts as of
                      ----------------------------------------------
 BACKLOG DATA:          May 2,    February 1, October 26,  July 27,
                         2008        2008        2007        2007
                      ----------  ----------  ----------  ----------

  Underground Mining
   Machinery          $1,153,068  $  969,597  $  804,534  $  775,563
  Surface Mining
   Equipment           1,089,466     897,627     833,064     630,302
  Crushing & Conveying   197,101          --          --          --
  Eliminations           (50,561)         --          --          --
                      ----------  ----------  ----------  ----------
  Total Backlog       $2,389,074  $1,867,224  $1,637,598  $1,405,865
                      ==========  ==========  ==========  ==========

This news release was distributed by PrimeNewswire, www.primenewswire.com

SOURCE: Joy Global Inc.

Joy Global Inc. 
          Sara Leuchter Wilkins, Vice President, Investor Relations
           and Corporate Communications
          414-319-8513

          At Financial Relations Board:
          Analyst Contact
          George Zagoudis
          312-640-6663

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