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!

PBS Coals Idling 2 W. Pa. Mines, Laying Off 138

By KEVIN BEGOS

PITTSBURGH (AP) â¿¿ A southwestern Pennsylvania coal company is idling two of its mines and laying off 138 workers, but it hopes things will get better next year.

PBS Coals' announcement Thursday comes on the heels of a July announcement that it had laid off 225 workers. Before those layoffs, PBS had roughly 1,000 employees. Now, the Roytown and Hart mines about 60 miles southeast of Pittsburgh will be idled, too, leaving the company with about 600 employees.

PBS Coals Inc. spokeswoman Lori Mason said the Somerset-based company has been hurt by the weak global steel market. PBS is owned by Russian steel giant OAO Severstal, and almost all its coal is used to produce steel.

"The steel market has been sluggish, but we believe there is going to be a pickup in that" in 2013, Mason said, noting that the company is still making new investments in its operations.

The company also blamed tightening U.S. Environmental Protection Agency regulations, but competition from booming natural gas production has also played a role.

According to the PBS website, coal used for power generation made up 45 percent of its production in 2010. Now, steam coal is about 1 percent of current output, partly because the price for that product is so low. Many power generation plants shifted from coal to gas over the last two years because of a major drop in natural gas prices.

Other companies are struggling with the same pressures.

In September, Virginia-based Alpha Natural Resources announced it was immediately closing eight mines â¿¿ four in West Virginia, three in Virginia and one in Pennsylvania â¿¿ and eliminating 1,200 jobs companywide by early 2013.

Bentek, a Colorado company that follows energy markets, said in a report this week that declines in U.S. coal consumption have pushed companies to focus on exports "and relinquish the U.S. power market to gas."

1 of 2

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