Birmingham, Alabama-based Walter Energy, the world's leading "pure play" metallurgical coal producer, reported a decline in year-on-year earnings Wednesday. Net income for Walter Energy was $107.4 million, compared to $116.2 million in Q2 2010.
Revenues from operations in the US were up from $410 million in Q2 2010 to $506.9 million in Q2 2011, although operating income was $168.7 million. Revenues were higher primarily due to the addition of the West Virginia and North River mining operations and higher average metallurgical coal selling prices, partially offset by lower sales volumes from the underground Alabama operations. Sales volumes in Q2 were constrained by metallurgical coal availability stemming from production impacts related to the April 27 Alabama tornadoes. Still, Q2 2011 coal sales prices at the US operations averaged $236.37/mt, up from $213.13/mt in Q2 2010.