EmailStory Stocks®
Archive
Last Update: 26-Oct-12 08:49 ET
Arch Coal shares on fire; up by 9% following better than expected earnings
Arch Coal (ACI $8.00 +0.69) reported third quarter earnings of $0.20 per share, excluding non-recurring items, $0.35 better than the Capital IQ consensus of ($0.15), while revenues fell 9.2% year/year to $1.09 billion versus the $1.02 bln consensus. Arch shipped 37.5 mln tons of coal in Q3 of 2012, a decrease of 6% when compared with Q3 of 2011 but an increase of 19% versus the second quarter of 2012. Looking ahead, we believe global coal markets are in the process of correcting -- with the domestic thermal market building some momentum while metallurgical markets are bottoming out. Because we expect global coal market conditions to remain challenging in 2013, Arch is executing a strategy to successfully navigate this weak market. Our plan is focused on improving operational efficiency, optimizing our asset base and preserving liquidity so we are well positioned to capitalize as the market recovers."
"Strong cost control in the third quarter led to higher cash margins in Arch's western operating regions. In Appalachia, the effect of lower thermal volumes drove third quarter cash costs higher versus the second quarter. In addition, we shipped 2.1 mln tons of metallurgical coal from Appalachia in the third quarter -- 11 percent more than in the second quarter -- and we expect to ship 7.5 mln tons of coal into metallurgical markets during 2012."
"Strong cost control in the third quarter led to higher cash margins in Arch's western operating regions. In Appalachia, the effect of lower thermal volumes drove third quarter cash costs higher versus the second quarter. In addition, we shipped 2.1 mln tons of metallurgical coal from Appalachia in the third quarter -- 11 percent more than in the second quarter -- and we expect to ship 7.5 mln tons of coal into metallurgical markets during 2012."
