FONT-SIZE Plus   Neg

Arch Coal Stock Tumbles On Q4 Loss - Update

Arch Coal Inc. (ACI), 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.

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
The U.S. Consumer Products Safety Commission has asked Safety 1st to recall 35,000 highchairs after several children fell and were injured. The recall covers about 35,000 wooden Safety 1st highchairs in three models: HC144BZF (Casablanca), HC229CZF (Gentle Lace) and HC229CYG (Black Lace). Safety... Ferrari, the luxury car division of Fiat Chrysler Automobiles (FCAU) is reportedly getting a much higher valuation than previously expected driven by its premium status of manufacturing high-performance luxury cars. According to reports, Ferrari expects the IPO to bring its market valuation to about... SeaWorld Entertainment Inc. (SEAS) has received another blow to its business as the California Coastal Commission banned breeding of captive killer whales in San Diego. The new law means SeaWorld won't be allowed to breed captive orcas, including through artificial insemination, at its California...
comments powered by Disqus
Trade ACI now with 
Follow RTT