Natural Resources, Inc.
Natural Resources Reports Strong Sales,
Growth in First Quarter of 2008
revenues climb $66 million, or 17%, compared with first quarter of
income for the quarter more than triples to $25.5 million, or $0.39 per diluted
EBITDA of $87.1 million, up $31.0 million from last year
than 750,000 additional tons of metallurgical coal contracted for delivery this
retains significant open sales position for 2009 and 2010
ABINGDON, Va., May 5,
2008—Alpha Natural Resources, Inc. (NYSE: ANR), a leading supplier of
high-quality Appalachian coal, reported a 17 percent improvement in revenues
from coal sales in the first quarter of 2008 over the first quarter of 2007 as
the company achieved the highest quarterly price realization in its history due
to rising metallurgical coal exports and price levels.
three months ended March 31, 2008, Alpha recorded coal sales revenues of $445.7
million compared with $380.2 million in the same period of 2007. Net income for
the most recent quarter was $25.5 million ($0.39 per diluted share), compared
with net income of $8.3 million ($0.13 per diluted share) in the first quarter
before interest, taxes, depreciation, depletion and amortization (EBITDA)
reached a new quarterly record of $87.1 million in the most recent quarter,
representing an improvement of $31.0 million, or 55 percent, over last year. The
definition of EBITDA and a reconciliation to net income, the most closely
related GAAP measure, is provided in a table included with the accompanying
supplies of hard coking coals for making steel have tightened considerably due
to production and logistics issues in Eastern Europe and Australia. With world
steel output climbing an estimated 5 percent in the first two months of the
year, prices for metallurgical coal have risen quickly as has international
demand. Alpha, the largest exporter of metallurgical coal out of the U.S.,
experienced a surge of 430,000 tons in its first-quarter exports,
year-over-year, which boosted metallurgical coal sales to 42 percent of the
company’s total sales volumes for the quarter.
joined the energy commodity boom and tight supplies are having a meaningful
impact on prices, for both prompt deliveries and forward commitments” said
Michael Quillen, Chairman and CEO.
said that after the close of the first quarter, the company secured commitments
for 2008 delivery on three-quarters of a million tons of planned metallurgical
production, at price levels consistent with recently announced settlements with
Japanese steelmakers. “Those prices ranged from $295 to $305 per metric tonne at
the port, which correlates to a realized price for Alpha of approximately
$240-250 per short ton at the mine,” Quillen said.
addition to improving our price deck for the current year, we’ve now established
a firm benchmark on price discussions for our 2009 metallurgical sales, where we
still had considerable planned production—more than 10 million tons—left to
commit and price as of mid-April,” added Kevin Crutchfield, Alpha’s president.
“We’re convinced that supply and demand conditions in both the domestic and
international steel markets will underpin a strong price environment going
Place • P.O. Box 2345
• Abingdon, Virginia
24212 • 866-322-5742
The following information was filed by Alpha Natural Resources, Inc.Old (ANR) on Monday, May 5, 2008 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.