BUCY

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Market Cap (intraday): 2.18B
Enterprise Value (17-May-07)3: 2.26B
Trailing P/E (ttm, intraday): 29.07
Forward P/E (fye 31-Dec-08) 1: 15.15
PEG Ratio (5 yr expected): N/A
Price/Sales (ttm): 2.85
Price/Book (mrq): 6.82
Revenue (ttm): 762.76M
Revenue Per Share (ttm): 24.37
Qtrly Revenue Growth (yoy): 14.90%
Diluted EPS (ttm): 2.34
Qtrly Earnings Growth (yoy): 23.00%
Average Volume (3 month)3: 893,586
Average Volume (10 day)3: 1,696,590
Shares Outstanding: 32.08M
Float: 31.92M

"Bucyrus International, Inc. engages in designing, manufacturing, and marketing draglines, electric mining shovels, and rotary blast-hole drills used for surface mining. It also provides aftermarket replacement parts and services for its machines. The company�s equipments are used for mining copper, thermal coal, metallurgical coal, oil sands, iron ore, molybdenum, phosphate, bauxite, gold, diamonds, and uranium. Bucyrus International also offers engineered replacement parts, maintenance and repair labor, technical advice, refurbishment and relocation of machines, structural and mechanical engineering, non-destructive testing, repairs and rebuilds of machine components, product and component upgrades, turnkey erections, and equipment operation and management under long-term maintenance and repair contracts. The company sells machines and aftermarket parts and services directly through company personnel in the United States and in international markets. It also sells its products in Australia, Brazil, Canada, Chile, China, England, India, Peru, and South Africa through its offices and independent sales representatives. The company was founded as the Bucyrus Foundry and Manufacturing Company in 1880 and changed its name to Bucyrus-Erie. Further, it changed its name to Bucyrus International, Inc. in 1996. Bucyrus International is headquartered in South Milwaukee, Wisconsin."

From yahoo finance

With the increase demand on natural resources and precious metals BUCY is in the right place at the right time to profit from the expansion of trade and boom in globalization. World wide reach and booming economies in Asia should fuel demand for BUCY products. The fundamentals are attractive and the market cap is still pretty small only 2 billion.

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New high today.

http://stockcharts.com/h-sc/ui?s=BUCY&p=D&b=5&g=0&id=p64717310469

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Investor's Business Daily
Mining Equipment Maker Flying High On Wings Of Commodity Boom
Thursday December 6, 6:12 pm ET
Marilyn Alva


The global commodities boom rolls on. Worldwide demand for iron ore, coal, copper and other materials seems to know no end.
Besides their importance in developed nations, such materials are key ingredients behind the rapid rise of emerging industrial economies in China and India.

ADVERTISEMENT


As mining companies have stepped up production to meet demand, they've had to buy more equipment from suppliers -- drills, giant shovels and other excavation tools.

One of those mining-company helpers is Bucyrus International (NasdaqGS:BUCY - News). The firm specializes in large-scale excavation gear used in surface mining and more recently high-tech systems for underground coal mining.

It's one of the top two mining suppliers in the world, the other being Joy Global (NasdaqGS:JOYG - News), based in Milwaukee.

Though headquartered in nearby South Milwaukee, Bucyrus has operations that span the globe. About 60% of its revenue comes from outside the U.S.

Although commodity-based businesses are typically cyclical, analysts see the current up cycle -- now in its fourth year -- extending at least another few years.

Analyst Seth Weber of Banc of America Securities writes that high commodity prices and capital expansion projects announced by mining firms are among the catalysts behind what will be an "extended cycle."

After five years of losses, business at Bucyrus picked up in 2004 and never looked back, with earnings rising from 48 cents a share that year to $2.25 in 2006.

This year, analysts polled by Thomson Financial expect earnings to rise 31% vs. 2006, to $2.95. They expect profit to climb 55% in 2008 and 31% in 2009.

Analyst Joel Tiss of Lehman Bros. sees earnings peaking in 2010. He wrote in a recent report that "the current mining cycle continues to have legs."

Chief Executive Timothy Sullivan told analysts in a November conference call that the Bucyrus surface mining shovel business is two-thirds sold out for 2008 and will probably be fully sold out by January at the latest. The company did not respond to interview requests.

Bucyrus entered the underground coal mining business when it acquired the German-based supplier DBT in May. Now the surface mining end of its business is reported as one of two divisions. The underground coal side made up more than half of third-quarter revenue.

Underground sales totaled $263 million vs. $237 million in surface mining. Surface mining might have been second in sales, but it has higher margins.

Tiss wrote that the "most noteworthy" details of the firm's third-quarter results were that surface mining margins reached 19.7% and that underground margins were almost 14%, well ahead of the predicted 10%.

With the added revenue from the DBT acquisition, total revenue in the third quarter was 170% higher than last year's figure, coming in at $500.3 million. Surface mining sales rose 28% from last year's third quarter.

Earnings in the quarter were up 43% from last year, to 76 cents a share.

The market for underground equipment is not growing as fast as surface mining. It's "taking a little bit of a breather," Sullivan told analysts. He expects a rebound in the next few quarters.

Bucyrus' backlog as of Sept. 30 stood at $1.3 billion, which was down from the second-quarter backlog in both sectors.

"As these orders arrive in a fairly lumpy fashion," Tiss wrote, "we are not too concerned about the modest decline in underground and surface backlog at this point."

He said orders for large draglines -- multimillion-dollar machines that scoop up dirt and rock -- will likely shift to the middle of 2008. Port and rail congestion in Australia has been blamed for holding up new orders from major mining customers Down Under.

Bucyrus has been a leader in powerful dragline drive systems for nearly 30 years. About 400 of its drag-lines are now in operation, "generating annuities on parts and services," Sullivan said in the conference call.

One of the firm's largest customers is Australian mining giant BHP Billiton (NYSE:BHP - News), which has made a bid to acquire London-based rival Rio Tinto (NYSE:RTP - News). Rio Tinto aims to triple its iron ore output.

Unlike in Australia, bottlenecks don't seem to be a problem in Canada. In mid-September, Bucyrus confirmed it is building a new dragline for a major Canadian coal mining company, with a contract value of more than $100 million.

"The sale of this dragline highlights the ongoing demand for our products and services," CEO Sullivan said in a statement.

He told analysts his company is talking with producers in Canada's active oil sands "to get a bigger piece of the pie."

Chief Financial Officer Craig Mackus said in the conference call that capacity constraints are affecting surface mining sales. The ongoing expansion of the firm's South Milwaukee plant should be completed by the first quarter of 2008, he said.

Rival Joy Global, also hampered by capacity constraints, plans to expand plant capacity, including a new facility in China.

"The big issue out in the marketplace right now is not, gee, is there going to be machinery bought," Sullivan said during the conference call.

Based on announced capital expansion plans by major producers of iron ore, copper and gold, "that's a given," he said. "The concern by the producers right now is if they're going to get their equipment when they need it and when they want it."

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Has rebounded to a new high after a near touch of the 50MA

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