NEW YORK Arch Coal Inc.
posted a first-quarter net loss of $70 million in contrast to
net income of $1.2 million in the same period last year on
revenue that fell 20.6 percent to $825.5 million from nearly
The St. Louis, Mo.-based company
reported adjusted earnings before interest, taxes, depreciation
and amortization (Ebitda) of $83.6 million for the three months
ended March 31, down more than half from $179.8 million a year
earlier due to lower sales volumes and weak demand.
The latest quarterly results included a pre-tax
charge of $10.5 million related to minimum throughput fees, as
required under Arch Coals existing port and logistics
agreements, the company said.
"Despite the global coal market
headwinds that have prevailed over the last 18 months, we are
delivering strong cost control, exercising capital restraint
and minimizing cash outflows in the trough of the market cycle
while maintaining our commitment to safety and environmental
excellence," president and chief executive officer John Eaves
said. "Globally, we believe metallurgical and thermal coal
markets are in the process of stabilizing, and we anticipate
gradual improvement as we progress through the remainder of the
Eaves said the companys
focus "remains on improving cash flow during this period of
market weakness and on preparing the company to capitalize as
coal markets recover. Our plan includes three key areas:
capital spending reductions, cost containment, and working
capital and financial management."
Arch has reduced its anticipated
capital expenditures by approximately $30 million for 2013, and
now expects to spend between $300 million and $330 million for
the full year.
A version of this article was first published by AMM sister
publication Steel First.