This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Despite Posting Profit, Foundation Coal Falls

LINTHICUM HEIGHTS, MD. ( TheStreet ) -- While the profit of its competitors fell victim to coal's slumping demand, Foundation Coal (FCL) managed to swing to a profit, thanks to some cost-cutting moves and higher prices.

On Monday, Foundation said its total sales dipped slightly in the second quarter, to $404.7 million from $411.9 million in the year-earlier period. Coal revenues, in particular, fell to $399 million from $404.8 million, while coal shipments dropped to 16.4 million tons from 17 million tons. But Foundation was able to offset that by slashing the cost of coal sales by 15% in the quarter and increasing price realizations during the quarter.

Earnings for the company landed at $30.7 million, or 67 cents a share, compared to a loss of $4.4 million, or 10 cents, in the year-earlier period.

The results also included $4.8 million worth of expenses related to Alpha Natural Resources's (ANR) plans to buy Foundation. On Friday, stockholders will vote on Foundation's then-announced $1.4 billion, all-stock sale. If approved, the deal, according to the press release, will produce the third largest coal producer in the U.S., with the transaction likely to close just after the vote.

On average, analysts polled by Thomson Reuters expected the coal supplier to produce earnings at 71 cents a share, along with revenues of $445.2 million. Typically, estimates exclude one-time items.

Earlier today, Alpha said its earnings fell 77% because of a demand drop fueled by cutbacks in steel and power production.
1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
ANR $0.04 3.17%
AAPL $117.34 -0.81%
FB $107.12 2.76%
GOOG $767.04 3.29%
TSLA $237.19 3.01%


Chart of I:DJI
DOW 17,888.35 +168.43 0.95%
S&P 500 2,102.63 +22.22 1.07%
NASDAQ 5,156.3060 +47.64 0.93%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs