TORONTO (miningweekly.com) – The NYSE-listed stock of coal miner Walter Energy in early trading on Thursday morning fell by as much as 13%, despite the company reporting better-than-expected results for the quarter ended September 30.
Birmingham, Alabama-based Walter reported a net loss of $98.9-million, or $1.48 a share, compared with a net loss of $100.7-million, or $1.61 a diluted share, in the third quarter of 2013.
However, excluding special items, the adjusted net loss for the quarter was $105.8-million, or $1.58 a share, compared with an adjusted net loss of $102.3-million, or $1.63 a share, in the same period a year earlier.
Wall Street analysts had, on average, expected a loss of $1.63 a share on revenue of $333.82-million.
The company’s consolidated revenue for the period was $329.5-million, compared with $455.8-million in the same period last year, reflecting a decrease in average metallurgical (met) coal selling prices of $22.57/t to $109.31/t, and a 500 000 t decline in metallurgical coal sales at 2.33-million tons.
Walter reported that its cost-cutting programme had resulted in a reduction in met coal cash cost of sales of $22.04/t and a 24% reduction in selling, general and administrative expenses.
The company had idled its Canadian operation in the second quarter.
Walter expected full-year 2014 met coal production of about 9.5-million tons. The cash cost of sales for the company's Alabama underground mines was expected to average about $96/t for the full year, down from the company's previous target of about $100/t. Full-year 2014 met coal sales volumes were expected to total about ten-million tons.
Walter's NYSE-listed stock closed down 2.14% at $2.29 apiece.