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 (KOL), trading down 2.8% Monday, which also includes Joy Global (JOYG), Consol Energy (CNX), and Peabody Energy (BTU).
Arch Coal is also among the top 15 stocks in the Global Coal Portfolio (PKOL), trading down about 3.3%.
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