Business

James River Coal’s 3Q loss widens on weak prices

Posted November 07, 2012 7:13 am

Associated Press

RICHMOND, Va. — James River Coal Co.’s third-quarter loss widened as weak demand drove down prices and the coal producer experienced higher costs.

The Richmond, Va.-based company said Wednesday it lost $20.6 million, or 59 cents per share. That is larger than its loss of $3.7 million, or 11 cents per share, a year earlier.

Revenue from coal sales fell about 9 percent to $264.6 million. Total revenue fell 5 percent to $288.1 million.

Coal shipments were flat at 3.16 million tons.

Coal producers are being hit by a double whammy of weak demand. Utilities need less coal to produce electricity because of mild weather and lower power generation, while construction overseas has slowed the appetite for coal to make steel.

James River Coal has operations in Kentucky, West Virginia and Indiana.

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