GLOBAL REACH. LEADlNG TECHNOLOGY. - Zonebourse.com

connected bridge structures that utilize chain conveyors that transport the coal from one bridge structure to the next
bridge structure and ultimately to the main mine belts.
Joy’s aftermarket infrastructure quickly and efficiently provides customers with high-quality parts, exchange
components, repairs, rebuilds, whole machine exchanges, and services. Joy’s cost-per-ton programs allow its
customers to pay fixed prices for each ton of material mined in order to match equipment costs with revenues, and
its component exchange programs minimize production disruptions for repair or scheduled rebuilds. Both programs
reduce customer capital requirements and ensure quality aftermarket parts and services for the life of the contract.
Joy sells its products and services directly to its customers through a global network of sales and marketing
personnel.
The Joy business has demonstrated cyclicality over the years. The primary drivers of the cyclicality are
commodity prices (particularly coal prices) and coal production levels. Joy’s business is particularly sensitive to
conditions in the coal mining industry, which accounts for substantially all of Joy’s sales. Other drivers of
cyclicality include product life cycles, new product introductions, competitive pressures and industry consolidation.
Surface Mining Equipment
P&H is the world’s largest producer of electric mining shovels and a leading producer of rotary blasthole drills
and walking draglines for open-pit mining operations. P&H has facilities in Australia, Brazil, Canada, Chile, China,
South Africa, and the United States, as well as sales offices in India, Mexico, Peru, Russia, the United Kingdom, and
Venezuela. P&H products are used in mining copper, coal, iron ore, oil sands, silver, gold, diamonds, phosphate,
and other minerals and ores. P&H also provides a wide range of parts and services to mines through its P&H
MinePro® Services distribution group. In some markets, electric motor rebuilds and other selected products and
services are also provided to the non-mining industrial segment. P&H also sells used electric mining shovels in
some markets.
Fiscal 2008 Developments:
• At the MINExpo in Las Vegas, Nevada, we introduced the 9030C Ultra-Class dragline. With a bucket capacity
of 110-160 cubic yards, the 9030C is the largest model of the new 9000 C-Series. The 9030C will leverage the
advanced P&H Centurion control system, first available as part of the C-Series electric mining shovels. The
Centurion control system coordinates and optimizes multiple systems and subsystems that comprise the overall
shovel, which ultimately lead to increased performance, greater control over maintenance costs and increased
shovel reliability.
• During the third quarter, the first part was machined in our new 130,000 square foot manufacturing facility in
Tianjin, China. The facility is targeted to be fully operational by May 2009. The facility will be fully equipped
to manufacture transmission parts and assemblies for original equipment and aftermarket, and will include gear
machining and grinding, rotating part and shaft manufacturing, and heat treatment and assembly processes.
Products and Services:
Electric mining shovels – Mining shovels are primarily used to load copper ore, coal, iron ore, other mineralbearing
materials and overburden into trucks or other conveyances. There are two basic types of mining loaders:
electric shovels and hydraulic excavators. Electric mining shovels feature larger buckets, allowing them to load
greater volumes of material, while hydraulic excavators are smaller and more maneuverable. The electric mining
shovel offers the lowest cost per ton of mineral mined. Its use is determined by the size of the mining operation and
the availability of electricity. P&H manufactures only electric mining shovels rather than mechanically driven
shovels. Dippers (buckets) can range in size from 12 to 82 cubic yards.
Walking draglines – Draglines are primarily used to remove overburden to uncover coal or mineral deposits and
then to replace the overburden as part of reclamation activities. P&H’s draglines are equipped with bucket sizes
ranging from 30 to 160 cubic yards.
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