Arch Coal posts narrower-than-expected loss
biz.yahoo.com
Monday October 22, 8:26 am Eastern Time
NEW YORK, Oct 22 (Reuters) - Arch Coal Inc. (NYSE:ACI - news), the second-largest U.S. coal producer, on Monday posted a narrower-than-expected loss as a problem at its West Elk mine in Colorado impeded production. Arch, based in St. Louis, said income fell to a net loss of $8.1 million, or 15 cents a diluted share, from a net loss of $5.2 million, or 14 cents a share, in the same quarter last year.
Wall Street expected Arch to lose between 25 and 12 cents a share with a mean of 19 cents, according to analysts polled by research firm Thomson Financial/First Call. Analysts said coal's current high price, about double its price last year in the spot market, is expected to remain high despite low prices of coal's main competition, natural gas. Coal's tight supply at electric plants, especially in the eastern half of the country, is helping to keep prices strong. ``U.S. coal markets continue to enjoy very strong fundamentals,'' Steven Leer, Arch's president and CEO said.
The third quarter is typically Arch's weakest earnings period due to miners' vacations and equipment maintenance, according to the company. Arch has subsidiary operations in Appalachia, Wyoming, Colorado and Utah. |
