|Arch Coal Revises Earnings Guidance for Full Year 2010, Announces Fourth Quarter 2010 Earnings Conference Call|
ST. LOUIS, Jan. 11, 2011 -- Arch Coal, Inc. (NYSE: ACI) today announced that it expects its 2010 earnings per diluted share on a GAAP basis to be between $0.94 per share and $0.98 per share, including amortization of coal supply agreements and early debt extinguishment costs. Excluding these charges, adjusted earnings per diluted share ("EPS") for full year 2010 would be in the range of $1.11 per share to $1.15 per share, which is below the adjusted EPS annual guidance range of $1.25 per share to $1.40 per share given on Oct. 29, 2010.
The company also now expects its adjusted earnings before interest, taxes, depreciation, depletion and amortization ("EBITDA") to be in the $718 million to $726 million range for full year 2010, which would be the second highest in company history.
"Lower shipment levels, partially driven by poor Eastern rail service, contributed to the guidance revision for 2010," said Steven F. Leer, Arch's chairman and chief executive officer. "In addition, the Mountain Laurel operation was impacted in December by geologic challenges, which marginally affected our planned production during the quarter."
Moreover, geologic challenges are now expected to force the longwall at Mountain Laurel to be idle for most of the first quarter of 2011 while additional development work is completed on the next longwall panel. The longwall is scheduled to restart in mid- to late-April. During the outage, Mountain Laurel will supply coal to customers from its five continuous miner operations as well as from existing inventories.
While the idling of the longwall at Mountain Laurel will have an impact on Arch's financial performance during the first quarter of 2011, the company expects to make up some portion of the delayed production as the year progresses. Despite the temporary longwall outage, Arch expects to achieve record-setting coking and pulverized coal injection (PCI) shipments of at least 7 million tons from its Central Appalachian operations during 2011. The company has committed roughly 3 million tons of coal into metallurgical markets for 2011 delivery.
Arch's fourth quarter 2010 earnings release will be distributed via PR Newswire before the market opens on Friday, Jan. 28, and will be posted to the company's Web site at that time. The company also will discuss its fourth quarter and full year 2010 financial results in a conference call that will be broadcast live over the Internet at 11:00 a.m. E.S.T. The webcast will be accessible via the "investor" section of the Arch Coal Web site at http://investor.archcoal.com/.
St. Louis-based Arch Coal, Inc. is the second largest U.S. coal producer. Through its national network of mines, Arch supplies cleaner-burning, low-sulfur coal to fuel roughly 8 percent of the nation's electricity. The company also ships coal to domestic and international steel manufacturers as well as international power producers.
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