Cliffs Natural Resources Inc.
) slashed its full-year 2012 thermal coal sales and production
volume expectations from 1.1 million tons to about 800,000 tons at
its Toney Fork No. 2 surface mine in southern West Virginia.The
company reduced its outlook due to weak pricing of its thermal coal
The consumption of thermal coal declined significantly due to
mild winters and considerably low natural gas prices. Due to the
lower guidance, Cliffs will downsize 46 people employed on an
hourly basis and 13 salaried people within its administrative
offices, effective June 15, 2012.
The results of the company's Toney Fork No. 2 surface mine
operations are reported within its North American Coal business
segment. The company, however, maintained its full-year 2012 North
American metallurgical coal sales outlook of 6.0 million tons and
production volumes of 5.5 million tons.
In April 2012, the company released its first-quarter 2012
results. The company posted earnings of $2.63 per share in the
quarter, which was down from $3.11 a year ago. The results outshone
the Zacks Consensus Estimate of $1.12 per share.
Sales for the quarter came in at $1,264.7 million, up 7% from
$1,183.2 million in the prior-year quarter. The increase was driven
by higher sales volumes across all the segments. However, revenues
missed the Zacks Consensus Estimate of $1,333 million.
Sales Volumes in the North American Coal segment increased 12%
to 1.4 million tons, led by significantly higher sales and
production volumes from Cliffs' low-volatile metallurgical coal
mines. Revenues per ton inched down 1.8% to $121.61, driven by
lower pricing for the company's coal products. Cash cost per ton
decreased 11% to $97.01 due to higher fixed costs.
Cliffs, which competes with
CONSOL Energy Inc.
Alpha Natural Resources, Inc
), currently retains a Zacks #3 Rank, reflecting a short-term (1 to
3 months) Hold rating. Currently, we have a long-term (more than 6
months) Neutral recommendation on the stock.
ALPHA NATRL RES (ANR): Free Stock Analysis
CLIFFS NATURAL (CLF): Free Stock Analysis
CONSOL ENERGY (CNX): Free Stock Analysis Report
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