Alpha Natural Resources
) reported a loss of 16 cents per share for the third quarter of
2012, much narrower than the Zacks Consensus Estimate of a loss
of 44 cents. The results of the company were however markedly
lower than the year-ago earnings of 34 cents.
GAAP loss during the quarter was 21 cents per share versus
earnings of 28 cents per share reported in the year-ago quarter.
Alpha Natural Resource's total revenue of $1,633.9 million in the
third quarter was lower than the Zacks Consensus Estimate of
$1,687 million. The results were lower than the year-ago figure
of $2,308.7 million, reflecting a decline of 29.2%.
During the reported quarter, total volume of coal sold declined
10.4% year over year to 27.9 million tons. The average realized
price per ton of coal during the quarter also decreased
substantially by $11.96 to $52.12.
Total cost and expenses in the reported quarter were $1.7 billion
versus $2.2 billion in the year-ago quarter. The decline in cost
of coal sales, and also a fall in selling, general &
administrative expenses brought down the overall cost in the
quarter under review.
Cash and cash equivalents of the company as of September 30, 2012
were $342.2 million versus $585.9 million as of December 31,
Long-term debt as of September 30, 2012, was $2.91 billion,
almost flat with $2.92 billion as of December 31, 2011.
Capital expenditure during the first nine months of 2012 was
$332.6 million compared with $314.9 million in the comparable
period, the prior year.
Cash from operating activities during the first nine months of
2012 was $305.6 million versus $537.2 million in the prior-year
The company reaffirmed its 2012 coal shipment in the range of
100-115 million tons.
The company retained its 2012 capital expenditure guidance in a
range of $450 million to $600 million.
The company expects interest expenses in the range of $190
million to $195 million, which includes the impact of new debts
and redemption of debts during October 2012.
Alpha Natural Resources Inc.'s peer
Arch Coal Inc
) reported pro forma earnings per share of 20 cents in
third-quarter 2012, significantly beating the Zacks Consensus
Estimate of a loss of 15 cents per share. Quarterly results were
also higher than the year-ago earnings of 3 cents per share.
Arch Coal's earnings upsurge was driven by a decline in its cost
of operations including reduction in depreciation, and selling,
general and administrative expenses.
Arch Coal's total revenue in the reported quarter was $1,087.6
million, down from $1,198.7 million in the year-ago quarter.
Quarterly revenue fell short of the Zacks Consensus Estimate of
The tough market conditions for metallurgical and thermal coal
continued to prevail, which in turn cast its adverse impact on
the performance of the company.
The overall global seaborne metallurgical coal market scenario is
not encouraging and the producers are trimming production to
realign supply with demand. Alpha Natural Resources also has
responded to the slackness in demand by lowering production of
lower quality metallurgical coal by three to four million tons on
an annual basis.
On a positive note, Alpha Natural Resources is yet to modify its
2012 shipment volumes and has the capability to increase its
metallurgical coal shipments and take advantage of opportunities
in this highly cyclical coal market.
Based in Abingdon, Virginia, Alpha Natural Resources Inc. along
with its subsidiaries engages in the production and selling of
steam and metallurgical coal in the United States. The company
was founded in 2002 and has 13,500 full-time employees.
ARCH COAL INC (ACI): Free Stock Analysis
ALPHA NATRL RES (ANR): Free Stock Analysis
To read this article on Zacks.com click here.