Alpha Natural Resources revenues jump, charges dampen profit
- May 6, 2010
Abingdon-based coal producer Alpha Natural Resources reported a 90 percent increase in revenues during the first quarter because of its acquisition of competitor Foundation Coal Holdings.
However, profit fell 66 percent during the quarter because of $4.2 million of pre-merger expenses, $66 million of pre-tax amortization of coal supply agreements and a $25.6 million deferred tax charge because of changes under the recent federal health-care plan.
Revenues for the first quarter were $922 million, compared with $486 million during last year’s first quarter. Profit was $14.2 million for the quarter, compared with $46.1 million in the first quarter of 2009.
Alpha Natural Resources is the largest U.S. producer of metallurgical coal, which is used in steel production. The company has seen increased demand in Asia for the coal.
Demand for coal used in power plants has shown signs of improving from the recession.