Alpha Natural +2.6% as earnings loss not as bad as expected

Alpha Natural Resources (ANR) posted a wider Q4 earnings loss but came in ahead of analyst estimates, sending shares +2.6% premarket.

Q4 sales of coal fell to 20.6M tons from 25.9M in the year-ago quarter, with the weighted average margin per ton falling to $4.57 from $17.45.

Recent bouts of very cold weather have increased demand for thermal coal and set “firmer" prices, but the market for metallurgical coal used in steelmaking continues to be “very challenging.”

ANR says it is changing its 2014 shipments guidance for eastern met and eastern steam coals primarily in response to weak pricing for low-quality met coals, which are selling below thermal prices; now expects to ship 77M-90M tons.

Capex guidance for 2014 is reduced to $250M-$300M to align levels of capital investment with the updated outlook for shipment levels.

From other sites
Comments (1)
  • 6151621
    , contributor
    Comments (1172) | Send Message
    Good summary SA, thanks for the feed. Maybe someday the market will find interest in coal (but for now it still is dead even with $5 nat gas).
    12 Feb 2014, 01:12 PM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Screener: Search and filter by asset class, strategy, theme, performance, yield, and much more
ETF Performance: View ETF performance across key asset classes and investing themes
ETF Investing Guide: Learn how to build and manage a well-diversified, low cost ETF portfolio
ETF Selector: An explanation of how to select and use ETFs