Please ensure Javascript is enabled for purposes of website accessibility

Alpha Natural Resources Q4 Results Mixed

By Associated Press - Feb 12, 2014 at 10:05AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The company also reduced the low end of its 2014 outlook for coal shipments because of soft pricing.

BRISTOL, Va. (AP) -- Coal producer Alpha Natural Resources' fourth-quarter loss widened, stung in part by lower coal shipments, a large tax charge and a loss on early debt extinguishment.

Its adjusted loss beat analysts' estimates, but revenue missed Wall Street's view.

The company also reduced the low end of its 2014 outlook for coal shipments because of soft pricing.

Its shares fell in Wednesday premarket trading.

For the three months ended Dec. 31, Alpha Natural lost $358.8 million, or $1.62 per share. That compares with a loss of $127.6 million, or $0.58 per share, a year earlier.

The latest quarter included a $205.1 million tax charge, as well as some other charges. It also included a $7.4 million loss on early debt extinguishment, compared with a $773,000 gain a year earlier.

Income tax expense rose to $92.5 million from $26.8 million.

Removing the charges and other items, the company lost $0.52 per share.

Analysts polled by FactSet expected a loss of $0.64 per share.

Revenue fell 30% to $1.09 billion from $1.56 billion mostly due to lower average realizations and fewer shipments of metallurgical and steam coal. Wall Street was looking for $1.18 billion in revenue.

Alpha Natural sold 20.6 million tons of coal in the quarter, down from 25.9 million tons a year earlier. The weighted average coal margin per ton was $4.57, down markedly from $17.45 a year ago.

Metallurgical coal shipments declined to 4.4 million tons from 4.9 million tons. Shipments of Powder River Basin coal fell to 9.3 million tons from 11.6 million tons a year earlier. Eastern steam coal shipments dropped to 6.8 million tons from 9.4 million tons.

Alpha Natural's full-year loss narrowed to $1.11 billion, or $5.04 per share, from a loss of $2.44 billion, or $11.06 per share, the previous year.

Its adjusted loss was $2.15 per share.

Annual revenue dropped 29% to $4.95 billion from $6.97 billion.

For 2014, the company now anticipates coal shipments between 77 million and 90 million tons. Its prior forecast was for 79 million to 90 tons.

Alpha Natural said that prices are soft for low-quality metallurgical coals, which are currently selling below thermal-coal prices.

The company's stock fell $0.11, or 2.1%, to $5.15 before the market opened.


The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 08/17/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.