National Coal (NCOC) Tops Q3 EPS by 1c, Revises 2008-10 Production Goals

November 17, 2008 12:26 PM EST

National Coal Corp. (Nasdaq: NCOC) reports a Q3 loss of $0.24, 1 cent better than estimates. Revenues were $33.5 million vs. consensus of $44.03 million. (One analyst)

"Given the significant deterioration in the domestic and global economy, the continued extremely tight market for skilled workers, and the ongoing impact of the current regulatory environment, management is in the process of revising its future production goals. In addition, electricity consumption year-to-date has been basically flat, leading to minimal growth in demand during 2008 versus 2007. Accordingly, our outlook for coal demand remains healthy, but tempered for the next year. However, our view on supply remains unchanged. We continue to believe that the outlook for domestic supply remains tight, with exports remaining healthy and the constraint on production, both new and existing, increasing.

Accordingly, we are revising our production goals for 2008 to 1.9 million tons, for 2009 to 2.4 million tons, and for 2010 a range of 2.4 million tons to 2.7 million tons. This significant reduction in our production goals for 2009 and 2010 is a direct reflection on our current outlook for the domestic coal market."

National Coal Corp. mines, processes and sells bituminous steam coal from mines located in East Tennessee and North Alabama and, until March 31, 2008, in Southeast Kentucky.[SM]

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