Breaking News
FONT-SIZE Plus   Neg
Share SHARE

Arch Coal Stock Tumbles On Q4 Loss - Update

RELATED NEWS
Trade ACI now with 

Arch Coal Inc. (ACI: Quote), Tuesday said it slipped to a loss for the fourth quarter, hurt by weak coal prices and one-time impairment charge. The quarterly loss was worse than what the Street anticipated, while revenues also fell short of expectations. Shares of the company were down about eight percent in morning trade on the New York Stock Exchange.

Moving forward, Arch noted coal markets to remain under pressure, but with a possibility for recovery in demand and pricing in 2013.

Arch Coal, which produces thermal and metallurgical coal, has been grappling with weak prices that has impacted revenues. The company has been incurring losses over the past quarters.

For the fourth quarter, the St. Louis, Missouri-based company reported a net loss of $295 million or $1.39 per share, compared with net profit of $71 million or $0.33 per share last year.

Results for the reporting quarter included a non-cash impairment charge of $231 million, mainly due to the decline in benchmark metallurgical coal prices.

Excluding items, loss for the quarter was $89 million or $0.42 per share, compared with a profit of $62 million or $0.29 per share last year.

On average, 26 analysts polled by Thomson Reuters expected a loss of $0.15 per share for the quarter. Analysts' estimates typically exclude special items.

Revenues for the quarter totaled $968 million, compared with $1.23 billion in the prior year. Analysts on consensus estimated revenues of $997.64 million.

Arch sold 36.1 million tons of coal during the quarter at a price of $24.21 a ton, compared with 37.5 million tons sold at a price of $25.57 a ton in the sequential quarter.

Arch recorded a $58 million charge in the quarter to reflect the rejection of a customer supply contract by the U.S. Bankruptcy Court and the assumption of the contract obligation by Arch.

For fiscal year 2013, Arch Coal expects sales from company-controlled operations of between 133 million and 144 million tons. The company anticipates capital expenditure for the year to be at or below $350 million.

Arch Coal is trading at $6.39, down 7.82%, on a volume of 13 million shares.

Register
To receive FREE breaking news email alerts for Arch Coal Inc. and others in your portfolio

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
Social networking giant Facebook, Inc. said Wednesday after the markets closed that its second quarter profit more than doubled from last year, as revenue surged 61% amid strong growth in mobile advertising. The company's quarterly earnings per share, excluding items, also came in above analysts' expectations as did its quarterly revenue. With traders reacting to the latest batch of earnings news, stocks fluctuated over the course of the trading day on Wednesday before eventually ending the session mixed. The Dow ended the day in the red, but the broader Nasdaq and S&P 500 managed to close in positive territory. House Republicans revealed a series of recommendations to address the crisis along the U.S.-Mexico border on Wednesday, although party differences may prevent a final bill from being passed before the August recess.
comments powered by Disqus
FREE Newsletters, Analysis & Alerts

 

Stay informed with our FREE daily Newsletters and real-time breaking News Alerts. Sign up to receive the latest information on business news, health, technology, biotech, market analysis, currency trading and more.