Just like Arch Coal (ACI) expect a shoddy quarter, but good words for the future as the coal supply/demand dynamic turns back in favor of the producers.
Well this is what happened, and the stock is up 5% off what I'd consider pretty shoddy results :) but this is an expectations game (earnings season) so the stock is up. I am going to take 125 of my 575 shares off the table here to raise some cash as some nice bargain prices are forming in other sectors....
- Consol Energy Inc., one of the nation's largest coal miners, said Thursday it swung to a third-quarter loss, impacted by a roof collapse and temporary shutdown at its Buchanan Mine near Mavisdale, Va.
- The company posted a loss of $5.4 million, or 3 cents per share, compared with a profit of $48.3 million, or 26 cents per share in the third quarter of 2006. Analysts expected profit of 25 cents per share on revenue of $845 million, according to a poll by Thomson Financial.
- Consol said the total impact from the mine roof collapse on July 9 and shutdown-related expenses was about $84 million. The company said it also lost sales of about 770,000 tons of metallurgical coal, used to make steel, from the closure.
- Revenue increased 3 percent to $868.4 million, from $843.4 million in the year-ago quarter.
- "The idling of the Buchanan Mine early in July, overwhelmed what was generally a good third quarter," said J. Brett Harvey, president and chief executive. "While the third quarter is historically a slow quarter for our mining operations mainly due to miners' vacation, had it not been for the Buchanan event, we would have been well ahead of last year's third quarter and essentially on-target with most of our internal projections."
- "Most of the key indicators suggest that a very robust energy market is rapidly developing," Harvey said. "Increased global demand for coal, particularly in the Pacific Rim, strong demand for scarce, high-quality metallurgical coal, the extension of the normal cooling season into October because of above normal temperatures, and reduced production in most U.S. coal basins have resulted in tight supplies and a rebound in coal prices."
Long Consol Energy in fund; no personal positions