Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



Bucy in the Mine With Diamonds

While the mining equipment made by this company is better suited for softer materials like coal than for diamonds, I couldn't resist a nod to the "Fab Four." After all, even a girl with kaleidoscope eyes could see that demand for mining equipment is scorching hot in this global commodities boom.

Wisconsin's Bucyrus International (Nasdaq: BUCY  ) has excavated another terrific quarter, earning $62.2 million on $621 million in sales. Bucyrus was purely a surface mining specialist until acquiring underground specialist DBT in May 2007, and because of that purchase only the surface mining segment results are comparable to the prior year period.

Sales from the surface mining segment rose 41.3% year-over-year and offering up a nice dose of operating leverage. On a consolidated basis, the operating margin was 16%, which compares favorably with the 12.6% margin reported this week by competitor Terex (NYSE: TEX  ) . Given the enormous increases in prices for steel, energy, and other input costs, these margins from Bucyrus are impressive.

Fools who follow my coverage of this sector know I keep a close eye on backlogs. Among the mining equipment manufacturers -- especially Bucyrus, Terex, Caterpillar (NYSE: CAT  ) , and Joy Global (Nasdaq: JOYG  ) -- these backlogs not only provide a window into the future revenue stream of the given company, but collectively they serve as a forward-looking barometer for the entire global mining industry. Bucyrus reported a total backlog of $2.17 billion; an improvement of 50.8% since the start of the year.

In an environment for equities that is truly brutal, the persistently positive earnings from mining equipment manufacturers feel like an oasis in a world of earnings angst. Choosing a favorite among would be tough, but it's clear Bucyrus is smiling at tangerine trees and marmalade skies.

Further Foolishness:

Now you know my thoughts on Bucyrus; how about sharing yours? Come join the free CAPS online community and share your views with a wonderful pool of talented individual investors.

Fool contributor Christopher Barker captains yachts and writes about stocks. He can also be found blogging actively and acting Foolishly within the CAPS community under the username TMFSinchiruna. He owns no shares in the companies mentioned. The Motley Fool has a disclosure policy.

Read/Post Comments (0) | Recommend This Article (5)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 693160, ~/Articles/ArticleHandler.aspx, 10/24/2016 10:20:57 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated Moments ago Sponsored by:
DOW 18,241.79 96.08 0.53%
S&P 500 2,151.35 10.19 0.48%
NASD 5,302.19 44.79 0.85%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

7/8/2011 4:00 PM
BUCY.DL $92.00 Down +0.00 +0.00%
Bucyrus Internatio… CAPS Rating: *****
CAT $86.89 Up +0.56 +0.65%
Caterpillar CAPS Rating: ***
JOY $27.94 Up +0.05 +0.18%
Joy Global CAPS Rating: ****
TEX $24.49 Down -0.27 -1.09%
Terex CAPS Rating: *****