Massey Energy Co. (MEE) swung to a first-quarter loss as the
coal miner reported higher costs and expenses, masking
better-than-expected revenue growth as production and shipments
grew.
The results will likely be one of the last issued by Massey as
an independent company, which reached a $7.1 billion cash-and-stock
deal in January to be acquired by Alpha Natural Resources Inc.
(ANR). The company--which operates mines in West Virginia, Virginia
and Kentucky--has been hurt by reduced production and increased
costs because of tougher mine-safety standards.
The coal miner has been troubled as it deals with the fallout of
a 2010 explosion at its Upper Big Branch mine in Montcoal, W.Va.,
that killed 29 workers. The company's longtime chairman and chief
executive, Don Blankenship, retired at the end of last year, paving
the way for Massey to agree to sell itself to Alpha Natural.
Massey and Alpha Natural intend to hold their respective
stockholder meetings to seek approval of the merger on June 1,
Massey said Monday. If approved, the companies expect to close the
merger promptly after the meetings.
Massey posted a loss of $7.7 million, or 7 cents a share,
compared with a year-ago profit of $33.6 million, or 39 cents a
share. Revenue climbed 38%, to $949.8 million.
Analysts surveyed by Thomson Reuters expected a profit of 58
cents on revenue of $907 million.
Gross margin slid to 27.3% from 31.8%. The average cash cost per
ton in the most recent period jumped 19%, to $66.04, while average
produced coal revenue per ton was $80.96, a 20% increase and
reaching an all-time record.
Produced tons sold jumped 21% to 10.3 million.
Shares fell 2 cents, to $67.69 in after-hours trading.
-By John Kell, Dow Jones Newswires; 212-416-2480; john.kell@dowjones.com