By St. Louis Business Journal

Patriot Coal Corp. swung to a loss in the second quarter loss but revenue rose 6 percent to $539 million from $507 million, thanks to higher prices.

The Creve Coeur-based coal company lost $13.6 million, or 15 cents a share, in the second quarter, compared with a profit of $31.4 million, or 39 cents a share, a year earlier. Analysts polled by Thomson Reuters had predicted a loss of 33 cents on $526 million in revenue.

Last month, Patriot permanently closed its Harris No. 1 mine near Wharton, W.Va., after it suffered a major roof fall. The mine was near the end of its mine life and had been expected to remain in production through mid-2011, the company said Tuesday. The closing of the mine resulted in a restructuring and impairment charge of $14.8 million in the 2010 second quarter. The charge included a $2.8 million non-cash impairment component related to equipment that will be abandoned. The charge also included a restructuring component totaling $12 million for payment of obligations that will be made with no future economic benefit for remaining operational contracts.

Patriot Coal Corp. (NYSE: PCX), led by CEO Richard Whiting, is the third-largest producer and marketer of coal in the eastern United States and reported $2.04 billion in 2009 revenue. It has 14 current mining complexes in Appalachia and the Illinois Basin.

Copyright 2010 American City Business Journals

http://stlouis.bizjournals.com/stlouis/stories/2010/07/26/daily19.html?ana=thestreet

Copyright bizjournals.com 2010

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