Arch Coal beats by $0.30, misses on revs; Co lowers its metallurgical sales expectations
Reports Q3 (Sep) loss of $0.01 per share, excluding non-recurring items, $0.30 better than the Capital IQ Consensus Estimate of ($0.31); revenues fell 18.9% year/year to $791.3 mln vs the $885.86 mln consensus.
"Arch is successfully navigating challenging global coal markets by controlling costs and capital spending and effectively managing liquidity. From an operational perspective, we are pleased to have delivered the best cost performance in the Powder River Basin since 2010. We also significantly enhanced our financial flexibility with the Canyon Fuel sale -- and ended September with $1.4 bln in cash."
Company Outlook For 2013, Arch now expects thermal sales volumes to be in the range of 134-137 mln tons.
The co has lowered its metallurgical sales expectations, and now expects to ship between 6.9-7.3 mln tons into coking coal and pulverized coal injection (PCI) markets during 2013. "We have reduced our sales volume expectations for coking and PCI coal in 2013 due to a combination of events," said Eaves.
"Of note, we have recently shifted some personnel from our Sentinel mine to Leer in anticipation of the longwall start-up in Dec. We have also opportunistically sold some PCI-quality coal into the industrial market. And, we have deferred some previously contracted tons into 2014 due to a force majeure event with a customer. For 2013, Arch has reduced its annual cash cost per ton guidance range for both the Powder River Basin and Appalachia."
"The co also has lowered its guidance range for general and administrative expenses and further tightened its range for capital expenditures in 2013. We remain focused on those factors and dynamics within our control to position Arch for a future market rebound. We have curtailed capital spending, cut costs and expenses, and further streamlined our diversified asset portfolio. We have also significantly increased our liquidity, and we have an ample cash position to weather the current market."