Arch Coal Revenue Disappoints

St. Louis, Missouri based Arch Coal Inc. (ACI) produces and sells metallurgical and steam coal. The company is also involved in shipping coal to international and domestic power producers as well as international steel producers.

In first quarter 2012, the company reported loss of 4 cents for each share contrary to earnings per share of 36 cents in the comparable period last year. Analysts were expecting earnings per share of 17 cents. The company earned total revenue of $1,039.7 million during the first quarter of 2012 against expectation of $1,161 million.

During the reported quarter, Arch Coal Inc. sold roughly 35.5 million tons of coal which was lower by 2% from 36.2 million tons during last year. This reduction in sales volume were due to a 21.4% plunge in sales volume of Western Bituminous Region, which was in part compensated by 40.6% increase in operations of Appalachia mining and the reduction in sales volume was also due to 5.5% drop in Powder River Basin (“PRB”) operations.

During the first quarter 2012, for each ton total operating cost enhanced by 30% due to an increase in operating cost for each ton in Appalachia as well as PRB, which was in part compensated by a reduction in per ton operating cost in Western Bituminous Region.

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Leo Pierson

About Leo Pierson

Former partner in a real estate management firm, Leo, has been active in the market for the last 8 years. Ex-blogger on penny stocks, now focused on long term growth stocks, Leo provides valuable market snapshots each day as part of our editorial team.

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