Tuesday, July 27, 2010

Patriot Coal (NYSE:PCX) Losses Less Than Expected, Lowers Sales Guidance

Patriot Coal (NYSE:PCX) wasn't able to generate the number it did last year in the same quarter, and its earnings suffered, with losses of $13.6 million, or 15 cents a share. Last year they enjoyed a profit of $31.4 million, or 39 cents a share.

Revenue managed to beat expectations, with the company posting $539 million, above the $526.1 million analysts were expecting. That was a six percent improvement over estimates.

Patriot lowered its sales guidance from 33 million to 35 million, down to 32 million to 34 million.

With the company having to shut down or close two coal mines off and on throughout the year, production questions have arisen as to their ability to grow the unit which produces coal for the making of steel.

The company said in their report they had concerns over the regulatory environment causing the cost per ton to increase while production decreases.

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