St. Louis, Missouri-based coal producer Arch Coal reported Friday net income of $46 million in Q3, compared to $9 million in Q3 2011. However, Arch shipped 37.5 million tons of coal in Q3 2012, a decrease of 6 percent when compared with Q3 2011 but an increase of 19 percent versus Q2 2012.
"Looking ahead, we believe global coal markets are in the process of correcting - with the domestic thermal market building some momentum while metallurgical markets are bottoming out," said Eaves. "Because we expect global coal market conditions to remain challenging in 2013, Arch is executing a strategy to successfully navigate this weak market. Our plan is focused on improving operational efficiency, optimizing our asset base and preserving liquidity so we are well positioned to capitalize as the market recovers."
Arch also said that while US coal demand for power generation is set to decline by more than 100 million tons in 2012 due to one of the mildest winters on record and decade-low natural gas prices, Arch believes coal consumption will grow again in 2013. Coal stockpiles at US power generators have declined from the record levels set in May 2012, and internal estimates suggest customer stockpiles could dip below 180 million tons at year's end. Additionally, the company said that US coal exports are projected to reach a record 125 million tons in 2012 even with anticipated slowing in Q4. This record level would represent a more than doubling of coal exports since 2007.