Arch Coal Loss Widens - Update

(RTTNews) - Arch Coal Inc. (ACI) Tuesday reported a loss for the fourth quarter that widened from a year ago, hurt mostly by lower sales and impairment charges.

The recent quarter was hurt by a softer pricing environment for metallurgical and thermal coals as well as the impact of rail service issues in the Powder River Basin and geological challenges in Appalachia, the company said in a statement.

The coal sector has been struggling with weak domestic prices and volumes, which has put pressure on Arch Coal for successive quarters.

The St. Louis, Missouri-based company's net loss widened to $371 million or $1.75 per share from $295 million or $1.39 per share last year.

Results for the quarter include a non-cash goodwill impairment charge of $265 million.

Excluding items, adjusted loss for the quarter was $95 million or $0.45 per share, compared with $45 million or $0.42 per share a year ago.

On average, 26 analysts polled by Thomson Reuters expected a loss of $0.39 per share for the quarter. Analysts' estimates typically exclude special items.

Sales for the fourth quarter declined to $719 million from $867 million in the prior year. Thirteen analysts had a consensus revenue estimate of $764.4 million for the quarter.

Sales volume for the quarter was 32.3 million tons, compared with 38.3 million tons in the sequential third quarter. Average price per ton was $19.91, compared with $19.54 in the sequential quarter.

For fiscal year 2014, Arch Coal expects to sell 131.5 million to 142.5 million tons of coal.

The company expects U.S. thermal coal markets to tighten further in 2014, with favorable weather trends and healthier economic activity driving increased power demand. But demand for Metallurgical coal is projected to be soft.

Arch Coal stock is trading at $4.06, up $0.05 or 1.32%, on a volume of 8 million shares on the NYSE.