(By Balaseshan) Coal Producer Alpha Natural Resources Inc. (NYSE:ANR) reported a wider quarterly loss due to goodwill impairment, as well as asset impairment and restructuring charges. Revenue exceeded consensus, while adjusted loss came in line with Street's expectations.
Loss for the second quarter widened to $2.2 billion or $10.14 per share from $50 million or $0.32 per share. In the latest quarter, the company recorded goodwill impairment of $1.5 billion, and asset impairment and restructuring charges of $1.0 billion.
Excluding charges, adjusted loss was $72 million or $0.33 per share, compared to a profit of $152 million or $0.97 per share last year.
Revenue grew 15.6% to $1.85 billion. Analysts, on average, had expected a loss of $0.33 per share on revenue of $1.78 billion.
Coal revenues increased 11% to $1.56 billion, primarily driven by a 40% growth in Eastern thermal coal revenue due to the inclusion of a full quarter of legacy Massey operations in the second quarter of 2012, which more than offset a 7% year-over-year decrease in revenue from metallurgical coal and production cutbacks implemented in the first half of 2012.
Alpha shipped 10.2 million tons of Powder River Basin (PRB) steam coal, 11.0 million tons of Eastern steam coal and 5.6 million tons of metallurgical coal.
Average per ton realization for PRB shipments rose to $12.96 from $11.92, while for Eastern steam coal shipments the average realization per ton declined to $65.05 from $66.65. The average per ton realization for metallurgical coal fell to $127.83 from $176.08.
Looking ahead into the fiscal 2012, Alpha anticipates total shipment volumes of 100-115 million tons, including 20-23 million tons of Eastern metallurgical coal, 38-44 million tons of Eastern steam coal, and 42-48 million tons of Western steam coal.
Due to expected reductions in capital purchases and leasing of selected items, Alpha narrowed its 2012 capital expenditures forecast to a range of $450 million to $600 million, from previous estimate range of $450 million to $650 million.
ANR closed Tuesday's regular session up 1.02% at $6.90. The stock has been trading between $5.75 and $35.15 for the past 52 weeks.