Coal Miners Follow Arch Down the Shaft (ACI, BTU, CNX, ANR, JRCC, WLT, CLD)

Before you go, we thought you'd like these...
Before you go close icon

Coal stack on whiteShares of Arch Coal Inc. (NYSE: ACI) have lost more than 9% this morning, following the company's fourth-quarter earnings report. The coal mining firm reported an adjusted earnings per share (EPS) loss of $0.42, compared with a consensus estimate for a loss of $0.15 per share. Revenues also missed estimates, coming in at $968.2 million, compared with a consensus call for $997.64 million.

And when one coal miner coughs, they all catch a cold. Peabody Energy Corp. (NYSE: BTU) dragged the sector down last week when it reported quarterly results, and Arch's results are having the same effect. Peabody's shares are down about 2.5% today, Consol Energy Inc. (NYSE: CNX) is seeing its shares down about 0.3%, and Alpha Natural Resources Inc. (NYSE: ANR) is down more than 2%. James River Coal Co. (NASDAQ: JRCC) is up about 0.7%, while Walter Energy Inc. (NYSE: WLT) is down about 2.3% and Cloud Peak Energy Inc. (NYSE: CLD) is down fractionally.

Demand for Arch's thermal coal has fallen off the table as mild weather and cheap natural gas continue to throttle demand. The company now expects volume shipments of about 141 million tons in 2013, down from 155 million tons in 2012. Production at Consol has dropped from 62 million tons in 2011 to an estimated 55.5 million to 57.5 million tons for 2013. That's one reason Consol is putting more effort and investment into its natural gas assets.

Like Peabody, Arch said today that it is "seeing signs" of a possible recovery in the domestic coal market in the second half of 2013. Those signs will evaporate unless natural gas prices move closer to $4 per million BTUs. Today's price is about $3.34 per million BTUs, and the outlook for the first half of 2013 does not indicate an average price above $4.

Filed under: 24/7 Wall St. Wire, Commodities & Metals, Earnings, Metals Tagged: ACI, ANR, BTU, CLD, CNX, featured, JRCC, WLT
Read Full Story


DJIA 20,810.32 34.72 0.17%
NASDAQ 5,835.51 -25.12 -0.43%
S&P 500 2,363.81 0.99 0.04%
DAX 11,947.83 -50.76 -0.42%
NIKKEI 225 19,371.46 -8.41 -0.04%
HANG SENG 24,114.86 -87.10 -0.36%
USD (per EUR) 1.06 0.00 -0.02%
USD (per CHF) 1.01 0.00 0.04%
JPY (per USD) 112.68 0.00 0.00%
GBP (per USD) 1.26 0.00 0.01%

Want more news like this?

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

From Our Partners