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BUSINESS
Arch Coal 3Q tumbles, but sees recovery signs
ST. LOUIS -- Arch Coal Inc. said Friday its third-quarter profits plunged on lower coal prices, but the coal miner suggested that improving operating margins in all regions reflect an emerging turnaround in once-struggling coal markets.
"In light of the 'Great Recession' of 2009, we're pleased to be profitably managing through a severe downturn in energy markets," said Steven Leer, Arch's chairman and CEO. "We are also seeing domestic and global economies begin to transition from recession to recovery."
Arch, which fuels about 8 percent of all U.S. electrical generation, said it is seeing improvements in markets for metallurgical or coking coal used in steelmaking, though the company cautioned that high stockpiles at U.S. power plants likely will dampen steam coal markets in the first half of next year.
Arch Coal earned $25.2 million, or 16 cents per share, on $615 million in revenue in quarter. That's down from profit of $97.8 million, or 68 cents per share, on $769.5 million in revenue during the same period last year.
The St. Louis-based company,tightened its earnings guidance for the year, saying it now expects 28 cents to 43 cents per share, compared with a July forecast of 25 cents to 55 cents per share.
