Alpha Natural Resources, Inc. (NYSE:ANR) Should Feel Impact Of Met Coal Consumption


Dallas, Texas 08/06/2014 (FINANCIALSTRENDS) – Alpha Natural Resources, Inc. (NYSE:ANR) notably, the country’s largest coal miners is expected to announce its second quarter earnings report on Aug 6. Current market indicators point out that Alpha should reflect the recent fall in met coal pricing and turn in weak results. But there could be positive factors which may balance the out fall of metal prices for ANR. These could be the increase in demand for thermal coal across the US markets.

Q1 Overview

Thus far into the fiscal, Alpha Natural Resources, Inc. (NYSE:ANR) in its first quarter had reported earnings of $1.1billion, reflecting a slid of 17% over previous year’s comparisons. The decline was noted against drop in prices as well as volumes for both kinds of coal- thermal as well as metallurgical coal. But the positive factor was the net losses had narrowed down to $55.7 million. Besides, it was an improvement over $110 million in the previous year. The causes of such gains are attributed to the one-time gain the company made through the sale of some of the assets along with effective cost management.

Therefore, there is expectation that there would be a slide in the second quarter earnings as well, given the poor price band width that Alpha Natural Resources, Inc. (NYSE:ANR) has battled with in the past quarter.

Eight Operators Idled

In a surprise move, Alpha Natural Resources, Inc. (NYSE:ANR) had made a surprise announcement to make idle eight operating affiliates due to continued weak market conditions. The government regulations too had added to the pressure as they continue to hold bearing on all of the Central Appalachian mining units.

Alpha Natural Resources which has a market capital of $757.00 million will hold its earnings call later on August 6, 2014. As the industry braises against the drop in metallurgical coal consumption, it needs to be seen how other players in this sector will perform.