NEW YORK Arch Coal Inc. swung to a net loss in the third quarter, driven by weak market conditions, excess global supply and continued softness in European steel demand.
St. Louis-based Arch Coal posted a net loss of $128.4 million for the three months ended Sept. 30, in contrast to net income of $45.8 million in the same 2012 period, the company said Oct. 29.
Revenue of $791.3 million for the quarter, supported by slightly higher sales volumes, was down 18.9 percent from $975.2 million in the same year-ago period.
"We are realigning our portfolio to focus on those core assets with the best long-term value and growth potential, particularly the Powder River Basin thermal (coal) franchise and the Appalachian metallurgical coal platform," president and chief executive officer John W. Eaves said.
External forecasts foresee continued steel production growth in Asia and North America, as well as stabilization in Europe in 2014.
A continued rebound in coking coal demand, along with global production curtailments and delayed mining capital investments, should tighten metallurgical markets in the future, Arch said.
A version of this article was published in AMM sister publication Steel First.