Alpha Natural Resources revenues up, profit down
- February 9, 2011
Coal supplier Alpha Natural Resources reported an 11 percent increase in coal revenues in the fourth quarter, but profit fell 40 percent on higher production expenses and costs associated with its previous acquisition of Foundation Coal Holdings.
The Abingdon-based company said its fourth-quarter profit was $10.8 million, down from $17.9 million the year before. Fourth-quarter revenues rose 11 percent to $993.1 million as its shipments of metallurgical coal, which is used to make steel, rose 17 percent.
Expenses during the quarter reached $980.3 million, compared with $863.6 million the year before.
Alpha plans to buy Massey Energy Co. in 2011, which would make it the third-largest producer of metallurgical coal in the world. A group of Massey shareholders have filed suit against the proposed merger, calling the proposed $7.1 billion acquisition “unfair” to Massey’s shareholders.