Alpha Natural Resources releases more disappointing news on the shirttails of last week’s announcement of plans to lay off 1,100 workers at 11 West Virginia surface coal mines by mid-October amid dismal markets and federal regulation.
First quarter numbers were not great for the company, but Alpha says its losses widened in the second quarter, citing weak domestic and international coal markets.
Alpha posted a loss of $512.6 million, or $2.32 per share, compared with a loss of $185.7 million, or 84 cents per share, in the same quarter a year earlier.
Alpha reported second quarter adjusted loss of $0.56 per share, according to Sterne Agee.
During this period of difficult market conditions and a very challenging domestic regulatory environment, Alpha continues to focus its efforts on what the Company can control, as demonstrated by continued cost reduction efforts in the East and other proactive corporate actions.
“We are pleased that our previously announced cost initiatives are yielding good results, including multi-year lows in Eastern adjusted cost of coal sales at $62.01 per ton. Although PRB costs came in above our expectations, this was primarily due to rail underperformance, which continues to significantly hinder shipment volumes across all regions, especially in the PRB. As a result, our second quarter PRB shipment volumes were 1.5 million tons below first quarter levels.”
During the second quarter of 2014, metallurgical coal shipments were 4.5 million tons, compared with 5.6 million tons in the second quarter of 2013 and 4.4 million tons in the prior quarter of 2014.