Arch Coal Inc. Reports Operating Results (10-Q)

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Aug 09, 2012
Arch Coal Inc. (ACI, Financial) filed Quarterly Report for the period ended 2012-06-30.

Arch Coal Inc has a market cap of $1.43 billion; its shares were traded at around $7.29 with a P/E ratio of 29.2 and P/S ratio of 0.3. The dividend yield of Arch Coal Inc stocks is 1.8%. Arch Coal Inc had an annual average earning growth of 1.8% over the past 5 years.

Highlight of Business Operations:

The comparability of our operating results between the three and six months ended June 30, 2012 and 2011 is affected by the acquisition of ICG on June 15, 2011. Coal sales revenues attributed to acquired ICG operations were $272.4 million in the second quarter of 2012 and $510.6 million in the first half of 2012, compared with $48.4 million in 2011.

Revenues. Our revenues consist of coal sales and revenues from our ADDCAR subsidiary acquired with ICG. The following table summarizes information about coal sales during the three months ended June 30, 2012 and compares it with the information for the three months ended June 30, 2011:

Powder River Basin Segment Adjusted EBITDA decreased in the second quarter of 2012 when compared to the second quarter of 2011 primarily due to the lower sales volumes in the Powder River Basin from our production cutbacks in response to the market conditions discussed previously. Per-ton costs were higher due to the lower production levels and higher diesel costs, which offset the impact of lower overall spending. Our total production costs were down in the second quarter of 2012 due to the redeployment of employees and equipment to significant reclamation activities performed during the quarter, reducing the number of contractors, and lower maintenance costs resulting from the idling of equipment. We expect this current cycle of reclamation to be largely completed in the third quarter.

Revenues. Our revenues consist of coal sales and revenues from our ADDCAR subsidiary acquired with ICG. The following table summarizes information about coal sales during the six months ended June 30, 2012 and compares it with the information for the six months ended June 30, 2011:

Powder River Basin Segment Adjusted EBITDA decreased in the first half of 2012 when compared to the first half of 2011, due to the lower sales volumes in the Powder River Basin from the production cutbacks in

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