Coal producer Alpha Natural Resources (
) reported earnings of 7 cents per share for the first quarter of
2014, surpassing the Zacks Consensus Estimate of a loss of 58
cents by a wide margin. Alpha Natural Resources had incurred a
loss of 47 cents per share in the year-ago quarter.
Alpha Natural Resources' total revenues of $1.12 billion in the
first quarter beat the Zacks Consensus Estimate of $1.09 billion.
However, the top line came in below the year-ago figure of $1.33
The year-over-year decline was primarily due to lower production
of coal as well as a lower selling price per ton of coal.
Consequently, coal revenues decreased 16.4% from the year-ago
Highlights of the Release
Coal tons sold in the first quarter decreased 6.5% to 21.4
million tons. The average realized price per ton also fell 10.7%
year over year to $44.48.
Selling, general and administrative (SG&A) expenses in first
quarter 2014 were $41 million, compared with $44 million in the
year-ago period. The SG&A decline was due to Alpha's cost
Cash and cash equivalents of the company as of Mar 31, 2014 were
$0.53 billion versus $0.62 billion as of Dec 31, 2013.
Long-term debt as of Mar 31, 2014 was $3.37 billion versus $3.39
billion as of Dec 31, 2013.
Cash provided by (used in) operating activities during the first
three months of 2014 was ($53.9) million versus $65.4 million in
the comparable prior-year period. Capital expenditure in the
first quarter of 2014 was $39.7 million versus $44.2 million in
the first quarter of 2013.
During the quarter the company repurchased shares worth $1.04
million versus $0.9 million in the first quarter of 2013.
The company expects to ship 78 to 88 million tons of coal in
2014, which will include 15 to 18 million tons of Eastern
metallurgical coal, 26 to 30 million tons of Eastern steam coal,
and 37 to 40 million tons of Western steam coal out of the PRB.
SG&A expenses are expected to range from $110 million to $140
million for 2014. Interest expense and depreciation, depletion
and amortization expense are anticipated in the range of $240
million to $255 million and $700 million to $800 million,
Capital expenditure for 2014 is expected in a range of $225
million to $275 million.
Other Company Release
Arch Coal Inc.
) first-quarter 2014 adjusted loss of 60 cents per share was much
wider than the Zacks Consensus Estimate of a loss of 42 cents.
Peabody Energy Corporation
) reported a loss per share of 19 cents in the first quarter
2014, lagging the break-even Zacks Consensus Estimate by a wide
CONSOL Energy Inc.
) reported pro forma earnings of 53 cents per share for the first
quarter of 2014, surpassing the Zacks Consensus Estimate of 20
cents by a whopping 150%.
Alpha Natural Resources was able to surpass expectations by a
If we go by the World Steel Association report, global steel
usage is expected to increase 3.1% in 2014 from 2013 levels. This
is expected to create fresh demand for met coal in the global
markets. However, the supply glut in the majority of coal markets
is putting downward pressure on prices. To accommodate the
demand-supply imbalance, the company made downward adjustments to
its met coal shipment guidance.
Alpha Natural Resources currently holds a Zacks Rank #4
ARCH COAL INC (ACI): Free Stock Analysis
ALPHA NATRL RES (ANR): Free Stock Analysis
PEABODY ENERGY (BTU): Free Stock Analysis
CONSOL ENERGY (CNX): Free Stock Analysis
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