Coal Mining Company Arch Coal Profits Decreased, Coal Prices Falls
November 4th, 2009 | File Under : Coal - Mining Production - mining companies
Coal mining company Arch Coal reported sales gains in the third quarter decreased, due to falling coal prices. Mining companies estimate the demand for coal will increase, especially coal used for steel making. Increased demand for coal will increase next year, coal demand is expected to reach the 4 million tons.
Arch Coal earnings decline followed by a decline in shares of Arch Coal mining 5.4 percent, after a prior increase 5 percent.
Chairman and Chief Executive Officer Steven Leer told Wall Street analysts, commenting on the decline in corporate earnings growth in coal mining and coal demand, “We see positive growth in the global economy. Market Asia Pacific grew quickly, along with the resumption of economic activity in the Atlantic market , should be open even more opportunities to meet and steam coal to U.S. moves offshore in the coming months. This year China has imported 75 tons of coal. Constraints ongoing supply here at home and around the world – combined with a rebound in global energy demand – will be launched upward pressure on coal prices in the long run. ”
Arch said third quarter net profit fell to $ 25.2 million, or 16 cents per share, compared with the previous year’s earnings of $ 97.8 million, or 68 cents per share. Revenue fell to $ 615 million from $ 769.5 million.
Arch says sold 29.1 million tons in the quarter, down from 34.8 million tons in the same quarter of 2008, but an increase 27.4 million in the second quarter. Prices average sales slipped to $ 20.05 from $ 20.38 a year earlier, but higher than $ 19.43 in the second quarter.
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