Massey Stock Plunges in Morning Trading

Massey Energy stock falls Thursday morning after the company reports a decline in both earnings and revenue for the first quarter and providing estimates of the financial impact from its recent mining tragedy.
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(Massey story updated with recent share price movement.)
NEW YORK (TheStreet) -- Massey Energy (MEE) has edged down 5.3% to $41.48 in the pre-market after reporting a decline in both earnings and revenue for the first quarter and providing estimates of the financial impact from its recent mining tragedy.

Massey Energy estimates the range of loss to be $80 million to $150 million for charges related to the benefits being provided to families of the fallen miners.

The company reported net income of $33.6 million or 39 cents a share on revenue of $688.6 million for the first quarter of 2010. By comparison, Massey generated net income of $43.4 million or 51 cents a share on revenue of $768.1 million the previous year.

The Wall Street consensus estimate for the quarter was 28 cents on revenue of $649.4 million. Massey said that its strong metallurgical coal shipments partially offset the weakness the company experienced in the utility coal markets.

On April 19, Massey director Lady Barbara Thomas Judge told the company's board that she was resigning from the board, effective that day. Massey Energy, in an SEC filing, said that Judge resigned because of demands from other ongoing business activities, and not due to any disagreement with the company on issues relating to its operations, policies or practices.

-- Reported by Andrea Tse in New York

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