Canaccord Genuity Morning Coffee on Arch Coal (ACI): A Lump of Coal Along with Your Severance
Tweet Send to a FriendGet Alerts ACI Hot Sheet
Price: $5.33 --0%
Rating Summary:
14 Buy, 12 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 7 | New: 10
Rating Summary:
14 Buy, 12 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 7 | New: 10
Trade ACI Now!
Canaccord Genuity Morning Coffee on Arch Coal (NYSE: ACI): A lump of coal along with your severance.
Arch Coal said it plans to cut about a tenth of its workforce, or 750 jobs, as it closes three higher-cost mining complexes and associated plants in response to the weak U.S. market for thermal coal. As a result, the company expects to incur one-time, non-cash write-down charges of about $425 million this quarter, and $14 million in severance and related costs between the second and third quarters. The production cuts and workforce reductions continue a trend this year of several U.S. coal companies scaling back amid persistently soft demand for the fuel and tighter regulations on coal-fired power plants. Thermal coal production will decline by more than 3 million tons annually, Arch said. However, it continues to expect thermal coal sales volume of 128-134 million tonnes in 2012. Last month, Arch said its first-quarter profit plummeted on weaker-than-anticipated coal demand and higher per-tonne operating costs.
Shares have been chopped in half over the past 3 months, falling from about $12/share to today's 4% fall to $5.89 share.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
Arch Coal said it plans to cut about a tenth of its workforce, or 750 jobs, as it closes three higher-cost mining complexes and associated plants in response to the weak U.S. market for thermal coal. As a result, the company expects to incur one-time, non-cash write-down charges of about $425 million this quarter, and $14 million in severance and related costs between the second and third quarters. The production cuts and workforce reductions continue a trend this year of several U.S. coal companies scaling back amid persistently soft demand for the fuel and tighter regulations on coal-fired power plants. Thermal coal production will decline by more than 3 million tons annually, Arch said. However, it continues to expect thermal coal sales volume of 128-134 million tonnes in 2012. Last month, Arch said its first-quarter profit plummeted on weaker-than-anticipated coal demand and higher per-tonne operating costs.
Shares have been chopped in half over the past 3 months, falling from about $12/share to today's 4% fall to $5.89 share.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
You May Also Be Interested In
- KeyBank Upgrades MDC Holdings (MDC); Cuts PulteGroup (PHM) & Ryland Group (RYL)
- Under Armour (UA) Estimates, Price Targer Raised at Sterne Agee
- UBS Raises PT on MEMC (WFR); Thinks Semi Sales Troughed in Q1
Create E-mail Alert Related Categories
Analyst CommentsRelated Entities
Canaccord Genuity
Login with Facebook
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
