On June 10, Vancouver, Canada-based metallurgical coal producer Western Coal Corp. issued its financial results for the three- and twelve-month periods ended March 31, 2010, stating that, during the January to March quarter, worldwide demand for metallurgical coal strengthened, while supply continued to be constrained, all of which, reinforced an increased recovery within the international steel sector.
According to the financial results, the net profit of the company was $11.2 million in the first quarter of 2010, compared with a net profit of $47.6 million in the first quarter of 2009, decreasing 76 percent. Sales revenues in the first quarter of 2010 saw an increase of 10.6 percent, rising from $111.7 million in the previous year to $136.6 million.
In the fiscal year ended on March 31, the net profit of the company was $40.8 million, compared with a net profit of $214.5 million in the previous fiscal year, decreasing 81 percent. In the given year, sales revenues saw a decrease of 25 percent, dropping from $586.1 million in the previous year to $438.6 million.
Commenting on the current market, the company said that, following China's record coking coal imports of approximately 35 million mt in calendar year 2009, the first quarter of calendar year 2010 saw a robust 10.9 million mt of coking coal imported into China to help meet China's surging demand for raw materials needed to meet the country's approximately 600 million mt of estimated crude steel production in 2010.