* Q4 EPS $1.20 vs $1.11 a year ago
* Sales fall 7 pct
* Sees 2010 EPS $2.65-$3.05, rev $2.8 bln-$3.0 bln
* Shares rise 3 pct (Recasts; adds details, updates share movement)
Dec 16 (Reuters) - Mining equipment maker Joy Global Inc (JOYG.O) posted a 5 percent rise in quarterly profit, helped by tighter cost controls, and said order rates would improve in 2010, sending its shares up 3 percent.
Continue Reading Below
The economic downturn had slowed orders for mining equipment in 2009, and the Milwaukee-based firm had said in October that despite rising metal prices, doubts about demand persisted to put a halt on new projects, restarts and production ramp-ups. [ID:nL2269714]
Our customers are increasing their capital expenditure budgets for 2010, and are also validating equipment specifications and confirming production slots to enable them to reactivate some of the projects they previously put on hold, Chief Executive Mike Sutherlin said in a statement.
The company, which competes with Bucyrus International Inc (BUCY.O), expects copper, international coal, iron ore and oil sands to have the greatest potential for original equipment orders during 2010, he said.
Joy Global, which makes giant shovels, drills and draglines to extract coal, copper, oil sands and other minerals, said demand for mined commodities continues to be dominated by strong imports from emerging markets, and from China and India in particular.
The company forecast 2010 earnings of $2.65 to $3.05 a share, on revenue of $2.8 billion to $3.0 billion.
Analysts on average were expecting earnings of $2.67 a share, before special items, on revenue of $2.86 billion, according to Thomson Reuters I/B/E/S.
For the fourth quarter ended Oct. 30, net income was $124 million, or $1.20 a share, compared with $118 million, or $1.11 a share, a year earlier.
Sales fell 7 percent to $963.5 million. But sales from the rest of the world, which accounts for more than half of the company's total revenue, rose 8 percent. Analysts on average were expecting earnings of $1.01 a share, before special items, on revenue of $931.1 million.
Shares of the company rose 3 percent to $57 Wednesday morning on Nasdaq. (Reporting by Divya Sharma in Bangalore; Editing by Anne Pallivathuckal and Deepak Kannan)