Arch Coal shares hammered after production cuts projected

Shares of Arch Coal plummeted Thursday after the Creve Coeur-based coal producer reported a decline in first-quarter earnings and lowered its output forecast for the year.

Arch Coal, the No. 2 American coal producer by tonnage, cited weak demand from power plants in projecting lower output from its biggest mine, the Black Thunder mine in Wyoming.

Output there will be between 62 million and 68 million tons this year, down from 70.5 million tons in 2017, the company said. The low end of that projection would mark the smallest output since 2000.

Arch Coal shares closed down 14.5 percent Thursday, at $82.11.

The company reported net income of $60.0 million, or $2.74 per share, for the quarter ended March 31. That was up from $51.7 million, or $2.03, the prior year, but it fell short of Wall Street expectations.

Revenue was 4.3 percent, to $575.3 million, also lagging Wall Street expectations.

Read more: Bloomberg, St. Louis Post-Dispatch


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