Alpha Natural Resources loss widens in second quarter
Alpha Natural Resources reported lower revenues and bigger losses in the second quarter amid a weak coal market. The coal producer, however, beat analyst expectations.
The Bristol-based company announced Wednesday that revenues fell 21 percent during the quarter to $1.05 billion from $1.3 billion druing the same period the previous year. Analysts had predicted revenue of $1.03 billion.
The company said that its quarterly loss had widened to $513 million, or $2.32 per diluted share, compared with $185.7 million, or 84 cents per diluted share, a year ago. That second-quarter 2014 loss includes a $309 million impairment charge.
Excluding the charge, the company would have reported a loss of $123 million, or 56 cents per share. Analysts had predicted a loss of 59 cents per share.
Alpha Natural Resources blamed the tough coal market for its lower revenues. The coal industry faces increased regulatory requirements and competition from low natural-gas prices and increased worldwide coal production.
“Coal markets remained extremely challenging in the second quarter,” Kevin Crutchfield, chairman and CEO of Alpha, said in a statement.
The company has announced plans to lay off 1,100 mine workers in West Virginia to save costs.