Alpha Natural Resources reports drop in revenues
The take: Revenues for coal miner Alpha Natural Resources dropped 29.8 percent in the fourth quarter as the company faced falling demand for metallurgical and steam coal. In turn, coal prices have fallen as well. Coal shipments during the fourth quarter were 4.4 million tons, compared with 4.9 million tons during the fourth quarter of 2012.
The coal industry has been struggling as it competes with low natural gas prices, increased regulation of its industry and an over-supply of some types of coal.
Revenues: Sales during the fourth quarter were $1.09 billion, compared with $1.6 billion in the fourth quarter of last year. For the full year, revenues fell 29 percent. In 2013, revenues fell 29 percent to $6.97 billion from $4.95 billion in 2012.
Net income: Alpha Natural Resources’ loss widened to $358.8 million, or $1.62 per share, from $127.6 million, or 58 cents per share, during the same period the year before. The company’s full-year loss narrowed from $2.4 billion to $1.1 billion.
The company’s take: Kevin Crutchfield, chairman and CEO of Alpha Natural Resources: “2013 was a challenging year for Alpha and the coal industry. After completing an extensive restructuring initiative in 2012, we announced further cost reductions in the fall of 2013 to better match our production and overhead expenses with current and anticipated market conditions. These are always difficult decisions because they affect employees and their families, but they are necessary in these challenging times. We have also actively managed our balance sheet to improve financial flexibility and enhance cyclical resilience by opportunistically accessing the capital markets and agreeing to monetize a portion of our Marcellus shale gas acreage.”