This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Vectren Management Discusses Q2 2012 Results - Earnings Call Transcript

Stocks in this article: VVC

Now let me just share a few broad thoughts about Vectren's investment in Coal Mining. Our performance year-to-date, and expected loss for the year, is driven by nearly 2 million tons of lower-than-expected sales due to mild winter and low natural gas prices. While demand softness, due to the inventory build, may carry into 2013, we continue to be confident in the long-term outlook for Illinois Basin coal and believe that delays in the execution of term contracts are directly related to the temporary high coal inventory levels of current and potential customers.

At Central Appalachian, coal production continues to decline, and scrubbers continue to be installed in order to meet the EPA air quality standards. We believe our coal mines are well positioned to capture future sales when demand recovers. Market indicators suggest improving demand in 2013, with supply and demand more in balance by 2014. While I'm not able to give specific guidance for 2013, we are hopeful of greater sales and improvement beyond that in 2014. With that said, we're not satisfied with current results from our Coal Mining segment and are aggressively pursuing new contracts, including spot and export sales, in order to secure better short-term as well as long-term results. As we've previously stated, the execution of additional term contracts will allow us to give greater clarity on the timing of opening the second mine at our Oaktown, Indiana mining complex. In the meantime, we are completing the remaining development work in order to be positioned to open this to mine, and sales contracts will support the additional production. Somewhat offsetting the weakness in the coal mining operations was the continued outstanding performance of our Infrastructure Services business, which continues to exceed our expectations.

Read the rest of this transcript for free on seekingalpha.com

3 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

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.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

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.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs