Massey Energy revenues down on weak economy, bad weather
- February 3, 2010
Richmond-based Massey Energy Co.’s revenues dropped 23 percent in the fourth quarter as coal demand weakened and poor weather hurt mining operations.
Sales for the quarter dropped to $583.9 million, compared with $755 million during the fourth quarter of 2008. Profit dropped 49 percent to $24.4 million, compared with $47.7 million the year before.
During the fourth quarter, energy demand from utilities and steelmakers dropped , and Massey’s operations were affected by weather and weather-related power outages. Produced tons of coal sold in the fourth quarter was 7.8 million tons, compared with 10.2 million tons during the fourth quarter of 2008.
“The shipping delays caused by the remnants of Hurricane Ida as it pounded the East Coast of the United States in November were only exacerbated by the heavy snowfalls and extreme low temperatures of December,” CEO Don Blankenship said in a statement. “The impacts of the adverse weather on mine operations and transportation and regulatory constraints prevented us from reaching our quarterly shipment targets.
Revenues for the full year were down 10 percent to $2.7 billion, compared with $3 billion in 2008. However, profit for the year more than doubled to $104.4 million, compared with $47.8 million in 2008.
The 2009 results included a $24.8 million non-cash gain from the Laurel Creek reserve and asset exchange. In 2008, the company had a pre-tax charge of $250.1 million for a legal case.