Richmond, Virginia-based coal producer Massey Energy Company announced Wednesday that its produced coal shipments in Q4 2010 were lower than projected in earlier guidance. The company stated that produced tons sold for the quarter totaled 8.9 million net tons (nt), bringing the full year 2010 total to 37.1 million nt. The total produced tons sold in the fourth quarter were approximately 1.4 million nt lower than the levels incorporated in Massey's most recent guidance issued in October 2010. The lower produced tons sold in addition to charges related to the former CEO's retirement and impairments related to idled or closed mines will result in an operating loss that is greater than was previously reported.
The 1.4 million nt shortfall in Q4 coal shipments was largely attributable to lower than anticipated production, inconsistent rail service and delays of export shipments at the ports during the quarter. Total coal production for the quarter fell short of expectations by approximately 800,000 nt. Fewer production shifts in deep mines, which were down by about 8 percent versus prior expectations, accounted for approximately half of the production shortfall. The remainder of the production shortfall resulted from lower than expected productivity from deep mines and highwall miners and higher ratios at surface mines.