Coal Producer Alpha Cuts 2008 Profit Expectations

FILE

By: The Associated Press | TriCities.com
Published: December 03, 2008

CHARLESTON, W.Va. (AP) - The sluggish steel market is catching up with coal producer Alpha Natural Resources.
The Abingdon, Va.-based company said today that lower shipments of metallurgical-grade coal could trim as much as $95 million from its expected 2008 profit. Alpha says it now expects earnings to range between $175 million and $185 million this year. That's down from an earlier range of $230 million to $270 million.
Alpha says it's trimming its fourth-quarter estimate of metallurgical coal shipments by 500,000 tons because customers are deferring delivery of shipments. And Alpha says one customer has asked to reopen negotiations for a 2009 metallurgical coal contract.
Several other factors are going to hurt this year's financial results as well. Among them are a $35 million pretax charge to close the Whitetail Kittanning mining complex in Preston County and a pretax charge of approximately $31 million, for the declining value of diesel fuel price hedges.

(Copyright 2008 by The Associated Press. All Rights Reserved.)

Coal Producer Alpha Cuts 2008 Profit Expectations

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