Alpha Natural Resources posts 2Q loss - Beckley, Bluefield & Lewisburg News, Weather, Sports

Alpha Natural Resources posts 2Q loss

Posted: Updated:
  • Local NewsLocal NewsMore>>

  • Brush Fire Burns on Herndon Mountain

    Brush Fire Burns on Herndon Mountain

    Thursday, April 24 2014 11:09 PM EDT2014-04-25 03:09:30 GMT
    Brush Fire on Herndon Mountain taken by Larry MarrsBrush Fire on Herndon Mountain taken by Larry Marrs
    A large brush fire is burning in Wyoming County Thursday night (4/24). The fire is covering around 160 acres on Herndon Mountain near Garwood and Alpoca.
    A large brush fire is burning in Wyoming County Thursday night (4/24). The fire is covering around 160 acres on Herndon Mountain near Garwood and Alpoca.
  • Gala to be Held for the Restoration of the John Henry Museum and Gift Shop

    Gala to be Held for the Restoration of the John Henry Museum and Gift Shop

    Thursday, April 24 2014 6:53 PM EDT2014-04-24 22:53:29 GMT
    HINTON -- The Hinton Hope Foundation, along with the John Henry Historical Society, are hosting a fundraiser gala on Saturday, May 10 from 5 p.m. to 8 p.m. The proceeds of the event will go towards the renovation of the new John Henry Museum and Gift Shop in Talcott. The gala will be held at the 19th century building, which is the future site of the museum. John Henry memorabilia, historic paintings, and antiques will be up for auction and local bands will provide entertainment.The renovation...
    HINTON -- The Hinton Hope Foundation, along with the John Henry Historical Society, are hosting a fundraiser gala on Saturday, May 10 from 5 p.m. to 8 p.m. The proceeds of the event will go towards the renovation of the new John Henry Museum and Gift Shop in Talcott. The gala will be held at the 19th century building, which is the future site of the museum. John Henry memorabilia, historic paintings, and antiques will be up for auction and local bands will provide entertainment.The renovation...
  • Bud/Alpoca dirty water runs clear, for now?

    Bud/Alpoca dirty water runs clear, for now?

    Thursday, April 24 2014 6:52 PM EDT2014-04-24 22:52:23 GMT
    In Wyoming County, people in Bud and Alpoca have been living without clean water for almost a year.
    In Wyoming County, people in Bud and Alpoca have been living without clean water for almost a year.

BRISTOL, Va. (AP) — Alpha Natural Resources Inc. posted a loss Friday as prices and profit margins collapsed on falling demand for coal.

A year ago, Alpha had a margin of $6.57 per ton of coal it sold. In the most recent quarter, that had shrunk to $2.72.

The amount of coal it sold fell, too, down 19 percent to 21.6 million tons.

Alpha shares slumped 8 percent and other coal miners tumbled as well.

Alpha's declining margins and volume drove revenue down almost 28 percent to $1.34 billion, from $1.85 billion a year earlier.

Alpha lost $185.7 million, or 84 cents per share, for the quarter that ended June 30. A year earlier, it lost $2.23 billion, or $10.14 per share, as it wrote down the value of assets and took restructuring charges, for a total charge of $2.5 billion.

If not for one-time items in both quarters, its most recent loss would have growth to $129 million, or 59 cents per share, from $72 million, or 33 cents per share, a year ago.

Analysts surveyed by FactSet had been expecting a loss of 34 cents per share on revenue of $1.85 billion.

Besides the pricing pressure, the company had unexpected downtime at its Cumberland mine and unfavorable mining conditions at its Emerald mine, both of which hurt production and shipments of some high-margin coal. The company announced on July 15 that the Cumberland mine is shut down while it fixes the roof of a key part of the mine.

Chairman and CEO Kevin Crutchfield said the company is idling unprofitable coal capacity for coal used for heating and steelmaking, "and we anticipate additional actions may be required between now and the end of the year." It's adjusting overhead and capital spending to be in line with the company's changing size, he said.

Coal inventory at U.S. utilities is shrinking, which should lead to more demand in the future, he said.

The company said it expects to ship 83 million to 91 million tons of coal this year.

Shares of Alpha Natural Resources Inc. fell 42 cents to $5.02 in early trading.

 

Copyright 2013 The Associated Press