On Monday, Alpha said in a press release that its net income came to $15.4 million, or 22 cents a share, compared to $67.1 million, or 94 cents a share in the year-earlier period.
The company's total sales were also cut nearly in half, landing at $386.2 million in the second quarter. In last year's second quarter, Alpha had reported revenues at $701.8 million. Languishing coal shipments and prices forced a drop in coal revenues, which fell to $333.9 million from $604.7 million.
Analysts polled by Thomson Reuters expected the company to post earnings at 38 cents a share, along with $446.3 million in revenue."As we predicted earlier this year, the persistence of weak demand conditions greatly reduced metallurgical and thermal coal shipments in the second quarter," Alpha CEO Michael Quillen said in a press release. "While global business conditions certainly aren't anywhere near where they were at this time last year, we have seen encouraging early signs of a turnaround in the steel markets and renewed interest from coal buyers, which had been mostly absent to this point." In May, Alpha announced plans to buy Foundation Coal (FCL) in an all-stock deal worth $1.4 billion at the time. Stockholders will vote on the deal on Friday. Shares of both Alpha and Foundation were losing over 4% just after the opening bell. --Reported by Sung Moss in New York City.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV