Walter Energy shares fall despite beating expectations
TORONTO (miningweekly.com) – The NYSE-listed stock of coal miner Walter Energy in early trading on Thursday morning fell by as much as 13%, despite the company reporting better-than-expected results for the quarter ended September 30.
Birmingham, Alabama-based Walter reported a net loss of $98.9-million, or $1.48 a share, compared with a net loss of $100.7-million, or $1.61 a diluted share, in the third quarter of 2013.
However, excluding special items, the adjusted net loss for the quarter was $105.8-million, or $1.58 a share, compared with an adjusted net loss of $102.3-million, or $1.63 a share, in the same period a year earlier.
Wall Street analysts had, on average, expected a loss of $1.63 a share on revenue of $333.82-million.
The company’s consolidated revenue for the period was $329.5-million, compared with $455.8-million in the same period last year, reflecting a decrease in average metallurgical (met) coal selling prices of $22.57/t to $109.31/t, and a 500 000 t decline in metallurgical coal sales at 2.33-million tons.
Walter reported that its cost-cutting programme had resulted in a reduction in met coal cash cost of sales of $22.04/t and a 24% reduction in selling, general and administrative expenses.
The company had idled its Canadian operation in the second quarter.
Walter expected full-year 2014 met coal production of about 9.5-million tons. The cash cost of sales for the company's Alabama underground mines was expected to average about $96/t for the full year, down from the company's previous target of about $100/t. Full-year 2014 met coal sales volumes were expected to total about ten-million tons.
Walter's NYSE-listed stock closed down 2.14% at $2.29 apiece.
Comments
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation