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Market: NYSE
Sector: General Mining
EPIC: ACI
Latest Price: 15.70  (1.36% Ascending)
52-week High: 36.04
52-week Low: 13.22
Market Cap: 3,345.38M
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Arch Coal
www.archcoal.com

Arch Coal contributes roughly 12% of America’s coal supply, with a leading position in all three major low-sulfur coal basins, with mining complexes in Wyoming, Utah, Colorado, West Virginia, Kentucky, and Virginia.

Full Arch Coal profile here
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Arch Coal benefits from strong rebound in US domestic coal market

30th Jul 2010, 5:35 pm
Arch Coal benefits from strong rebound in US domestic coal market

Arch Coal (NYSE: ACI) reported second quarter net income of $66 million, or 41 cents per diluted share, a huge swing from net loss of $15.1 million, or 11 cents per diluted share, in the second quarter of 2009.


The US based coal producer benefited from higher prices for coal, which pushed revenues 40% higher in the second quarter.  Adjusted EBITDA more than doubled to $199 million.


"Arch delivered a strong operating performance in the second quarter of 2010 - with substantial increases in revenues, EPS and EBITDA - compared with the year-ago quarter," said Steven F. Leer, Arch's chairman and chief executive officer. "Higher pricing in Central Appalachia and continued effective cost control in all operating segments helped expand our consolidated per-ton operating margin in the quarter just ended. We also generated positive free cash flow for the first six months of 2010."


For the first half of 2009, EBITDA hit nearly $331 million, up from $193.8 million in the first half of 2009, while revenues hit $1.5 billion, up 20% on the same period last year. Cash flow increased by a robust 62% to $259 million, while capital expenditure (“Capex”) fell 30% to $172 million.


"Coal markets have improved considerably since this time last year, but remain well below the levels of the bull market of 2008," said Leer. "Global metallurgical markets remain relatively tight, and domestic steam coal conditions have strengthened meaningfully on the decline in stockpiles of U.S. generators, particularly those served by Powder River Basin coal."


"Looking ahead, we expect to continue managing through any ongoing operational challenges and deliver even stronger results in the year's second half," added Leer. "We also will remain disciplined in controlling our costs and capital spending levels to generate meaningful free cash flow for our stakeholders."

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