RICHMOND, Va. (AP) â¿¿ James River Coal Co. said Thursday it posted a $25.8 million second-quarter loss, hurt by weak coal demand and prices.
Despite the loss, the results were better than Wall Street expected and James River shares rose nearly 8 percent in premarket trading. The stock has lost about two-thirds of its value in 2012 on a broad slump in coal demand.
James River mines thermal coal used for power generation and metallurgical coal, used to produce steel.
The coal industry has been battered this year as U.S. utilities switch to cheap natural gas to generate electricity instead of coal, mild weather in the U.S. hurt demand and the recession in many European countries, combined with a slowdown in Asia, stifled exports.The Richmond, Va., miner said it remains cautious on steelmaking coal because of the weak global economy, while it believes the market for thermal coal is just beginning to show signs of recovery. The company's loss amounted to 74 cents per share in the April-June quarter, compared with a profit of $789, 000, or 2 cents per share, in the same period last year. Revenue tumbled 21 percent to $277.4 million from $352 million, as coal sales dropped 21 percent to $259.6 million. Coal shipments fell 11 percent to 2.9 million tons. Analysts, on average, expected a loss of 80 cents per share on $276 million in revenue, according to a FactSet poll. James River shares rose 17 cents, or 7.6 percent, to $2.40 in premarket trading.
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