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Foundation Coal Tumbles

Shares fall 4% on a refinancing charge.

Foundation Coal


fell 4% after saying third-quarter earnings will be reduced by about 17 cents a share on account of a noncash charge related to its secured senior debt refinancing.

Scheduled miners' vacations at the company's eastern operations and a planned longwall move at the Cumberland Mine more than offset strong operational performance at the company's Wyoming and Pennsylvania affiliates.

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The combined impact of longwall move and miners' vacations reduced adjusted EBITDA by about $18 million to $22 million compared with the second quarter, the company said.

Analysts polled by Thomson First Call were expecting third-quarter earnings of 42 cents a share on sales of $372.4 million.

"Foundation Coal remains focused on strategies to improve operational performance and reduce costs," the Linthicum Heights, Md.-based company said. "Looking ahead, our marketing strategy has positioned us well for 2007, and to take advantage of strong long term industry market fundamentals."

Shares fell $1.35 to $32.65.

This story was created through a joint venture between and IRIS.