Arch Coal (ACI) cut its guidance after the close of trading last week, sending shares lower.
The thermal and metallurgical coal provider said it now expects earning sin a range of $900 million to $1 billion for the 2011 fiscal year.
Per share, earnings are expected to total $1 to $1.40 per share on an adjusted basis, compared to a prior forecast for earnings of $1.75 to $2.15 per share.
Arch Coal said the reduction in guidance is due to lost metallurgical coal production in the third quarter at its Mount Laurel complex, where unfavorable geologic conditions idled the facility's longwall for 45 days following a roof fall.
The company noted the forecast still represents a record for the company, despite the guidance cut. The projections fall well below analyst expectations.
Arch Coal shares are trading down about 5.7% Monday.
Arch Coal is in the top 15 holdings of the Coal ETF (NYSE:KOL), trading down 2.8% Monday, which also includes Joy Global (JOYG), Consol Energy (NYSE:CNX), and Peabody Energy (NYSE:BTU).
Arch Coal is also among the top 15 stocks in the Global Coal Portfolio (PKOL), trading down about 3.3%.
Any ideas and opinions presented in all Market News Video clips are for informational and educational purposes
only, and do not reflect the opinions of BNK Invest, Inc. or any of its affiliates, subsidiaries or partners.
In no way should any content contained herein be interpreted to represent trading or investment advice.
None of the information contained herein constitutes a recommendation that any particular security, portfolio,
transaction, or investment strategy is suitable for any specific person. All viewers agree that under no
circumstances will BNK Invest, Inc,. its subsidiaries, partners, officers, employees, affiliates, or agents be held
liable for any loss or damage caused by your reliance on information obtained. Read Full Disclaimer.