US machinery firm files claim against Egyptian government
US-based mining machinery maker Joy Global has filed an arbitration claim against a customer in Egypt in a dispute over the testing of some phosphate mining equipment, officials said Friday.
At issue is about $15 million, said Chief Financial Officer of Joy Global, Donald C. Roof. Roof made the comments after the company released results for its first fiscal quarter, which ended February 1. For the period, sales fell 16 percent from a year earlier, while the net loss decreased.
The equipment at issue was built and delivered but, Roof said, "the Egyptian government wrongfully prevented us from doing performance testing and will not complete the contract and release bank guarantees." Instead, Roof said, the government might claim the $15 million guarantee. That could affect Joy's cash position, which the company said was $98.5 million as of last month, up from $70.9 million a year earlier. It could take a year or more to resolve the matter before an international arbitration panel, Roof said.
In trading Friday after the earnings were released, Joy shares fell 12 cents to $10.19.
The problems in Egypt could affect the firm's available cash balances in the short term, Roof said in an interview.
Joy Global is an international mining machinery and services company. Through its market divisions, P&H Mining Equipment and Joy Mining Machinery, the company manufactures underground and surface mining equipment and offers aftermarket-related services. — (menareport.com)
© 2003 Mena Report (www.menareport.com)
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