LISLE, Ill. (AP) â¿¿ Metallurgical coke producer SunCoke Energy Inc. said Wednesday that its profit declined in the third quarter as higher operating expenses and lower prices for its coal-derived fuel offset a spike in revenue.
The company reported net income of $18.4 million, or 26 cents a share, for the three months ended Sept. 30. That compares with net income of $37.4 million, or 53 cents a share, in the same period last year.
Revenue surged to $403.5 million from $331.6 million a year earlier, driven by higher coal prices and the contribution from Harold Keene Coal Co. Inc., which SunCoke acquired in January.
The results trumped analysts' consensus forecast for earnings of 23 cents a share on revenue of $397.9 million, according to FactSet.SunCoke said its third-quarter results were hurt by lower coke sales prices in its Jewell Coke segment due to contract amendments with ArcelorMittal that changed the coke pricing formula, significantly reducing the impact of higher coal prices. Still, the company's domestic coke-making business produced a record level of coke during the quarter, while the company's coal mining segment posted better annual results due to improved coal prices. Even so, management noted that the company's mining operations remain challenged by higher cash costs, deteriorating yields and diminished production. As a result, SunCoke will slow its planned expansion to focus on improving operations at its existing mines, the company said. SunCoke shares rose 23 cents, or 2 percent, to $12.02 in afternoon trading. Shares are down 28 percent since the company's initial public offering in July.
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 + 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