Mining equipment maker Joy Global Inc. said on Wednesday that its second-quarter net income fell, pulled down by a sharp drop in orders from underground U.S. coal mines as well as by higher interest expenses and amortization charges related to an acquisition.

But the Milwaukee-based company said it was confident the U.S. coal market, its largest single sales segment, was "nearing recovery." In the meantime, Joy said strong international growth would allow it to meet market expectations for profit and revenue over the coming four quarters, sending its shares higher.

Joy said it earned $77.6 million, or 70 cents a share, for the second quarter ended April 27, down from $82.9 million, or 66 cents a share, a year before. Analysts on average were expecting 72 cents a share before exceptional items, according to Reuters Estimates.

Net sales rose 12 percent to $629.2 million. Analysts were expecting $657.0 million on average.

Interest expense for the quarter rose to $9.2 million from less than $600,000 in the year-ago period due to the issuance of $400 million of long-term debt in November 2006, the company said in a statement.

The company, which makes giant shovels, drills and draglines, forecast earnings of $3.25 a share to $3.50 a share on revenue of $2.8 billion to $3 billion for the next 12 months.