Arch Coal 1st-quarter net nearly triples; year outlook up
By Robert Daniel
Last update: 8:27 a.m. EDT April 21, 2008
TEL AVIV (MarketWatch) -- Arch Coal Inc., [s aci] the St. Louis coal producer, reported first-quarter net income nearly tripled and profit from operations more than doubled on 22% higher revenue. Earnings reached $81.1 million, or 56 cents a share, from $28.7 million, or 20 cents, in the year-earlier period. Earnings from operations were $116.5 million versus $50.9 million. Revenue rose to $699.4 million from $571.3 million. Analysts surveyed by FactSet Research were expecting profit of 45 cents a share on $676.8 million of revenue. Profit margins were particularly wide in the Central Appalachia region, while higher prices and cost controls also contributed to the results, Arch Coal said. The company sold 34.3 million tons of coal in the quarter, up 9.2% from 31.4 million a year earlier. The average sales price per ton rose 9.7% to $18.49 from $16.85, while the cash cost per ton rose less than 1% to $13.05 from $12.93. For the year, Arch Coal lifted its estimate of earnings to a range of $2.40 to $2.80 a share. FactSet's survey is looking for $2.43.
