Joy Global (JOY) and other companies in the mining sector are sinking after Joy reported weaker than expected third quarter results and significantly lowered its full-year earnings per share guidance. The mining equipment maker - which blamed its struggles on macro economic trends - reduced its fiscal 2012 earnings per share guidance to $6.92-$7.07 from its previous outlook of $7.15-$7.45. Analysts' consensus estimate was $7.07. Lower demand for U.S. coal and the continued slowing of the Chinese economy negatively affected Joy's results, the company's CEO, Mike Sutherlin said. "Although there is evidence that both the U.S. and China markets have bottomed, we expect a recovery to be sluggish," Sutherlin added. In a note to investors earlier today, BMO Capital analyst Joel Tiss predicted that earnings per share estimates for Joy are unlikely to bottom for a few quarters, if not longer. Tiss maintained a $49 price target and Underperform rating on the shares. In mid-morning trading, Joy dropped $2.91, or 5.48%, to $50.16. Other stocks in the mining sector also declined, with Caterpillar (CAT) losing 1.50% to $84.72, Vale (VALE) giving back 1.90% to $16.25, Rio Tinto (RIO) slumping 2.39% to $44.05, and Cliffs Natural (CLF) retreating 2.08% to $36.36.
America has no tolerance for wealthy people griping about their financial woes. But they have concerns too.