Appalachian coal producer
Alpha Natural Resources
said Friday its second-quarter earnings fell 12.5% from the year-ago period, hurt by higher depreciation from acquisition.
The Abingdon, Va.-based company earned $23.1 million, or 36 cents a share, in the quarter, compared with $26.4 million, or 43 cents a share, a year ago. Second-quarter results include stock-based compensation charge of 5 cents a share and expense of 3 cents a share related to employee stock-based awards. Analysts polled by Thomson First Call were expecting earnings of 44 cents a share in the most recent quarter.
Second-quarter revenue rose 18.7% from a year ago to $495.7 million against analysts estimation of $482.4 million.
"Production and sales volumes were strong in the second quarter and, as expected, price realizations fell back a bit from the beginning of this year when we benefited from a carryover of higher priced export business and a larger proportion of metallurgical sales," the company said. "All in all, our business model of mining high-quality Appalachian coals through flexible, diversified operations continues to produce high margins and industry-leading revenues per ton."
Second-quarter operating income fell 1.5% from a year ago to $41 million and operating margin declined 170 basis points to 8.3%.
By segment, first-quarter revenue from coal segment rose 19.9% from the year-ago period to $436.5 million. Revenue from the freight and handling segment increased 5.6% to $50.9 million and revenue from other segment was up 54.7% to $8.2 million.
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