logo
Share SHARE
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
AIG reported a plunge in second-quarter profit, hurt by a decline at its insurance business, debt-related losses and lower gains from the sale of investments. However, its earnings topped Street estimates, partly on contribution from aircraft leasing giant AerCap. AIG also announced a boost in dividend and said it would buyback an additional $5 billion stock. Automakers on Monday reported strong U.S. vehicle sales for the month of July, driven by continued demand for trucks and sport-utility vehicles amid an improving economy, lower gas prices and easy availability of credit. Detroit's Big Three - General Motors Co., Ford Motor Co. and FCA US, LLC - all reported vehicle sales above analyst expectations. British lender Lloyds Banking Group Plc. Friday reported higher profit in its first half, benefited by increased net interest income and margin as well as lower impairment. Looking ahead, the company lifted its net interest margin forecast.
comments powered by Disqus
RELATED NEWS
Trade ACI now with 
Follow RTT