James River Coal Co., a Richmond-based owner of mines in Kentucky and Indiana, reported second-quarter sales that trailed analysts' estimates and a loss that was wider than predictions. James River dropped for the third straight day in Nasdaq trading, declining $1.67, or 4.8 percent, to $33.40 yesterday.
The second-quarter loss was $24 million, or 97 cents a share, and included a $3.01 million charge associated with debt, the company said. Three analysts estimated a loss of $10.1 million, or 30 cents, on average.
CEO Peter Socha blamed higher costs and long-term delivery contracts signed in 2006 and 2007, well before U.S. coal prices more than doubled because of strong international demand and weak supply. During a conference call with analysts, Socha said James River expects to begin reaping the benefit of higher prices this year and beyond.
The company also said it was giving miners $100 a month toward gasoline tied to attendance. Labor shortages have plagued Appalachian coal producers in recent months as coal prices have soared along with international demand. Richmond-based Massey Energy Co. and Abingdon-based Alpha Natural Resources also are offering gas money to miners.
- Wire Reports
Colfax
Shares of Richmond-based Colfax Corp. fell 16 percent yesterday after the company reported a loss because of one-time charges.
The maker of industrial pumps reported a loss for the three months that ended June 27 of $31.4 million, or $1.01 per share, compared with a profit of $4.8 million, or 22 cents per share, in the same period of 2007.
The results include $57 million in costs from the company's initial public offering in May. Excluding one-time items, the company reported that its profit rose 53 percent to $13.9 million, or 32 cents per share, compared with a profit of $9.1 million, or 21 cents per share, in the year-ago period.
Revenue rose 32 percent to $161.4 million. The company said it had strong demand for its fluid-handling products and an order backlog of $384 million at the end of the quarter.
Colfax shares closed at $23.15, down $4.47, or 16 percent, on the New York Stock Exchange.
- John Reid Blackwell
Tredegar
Tredegar Corp.'s second-quarter profit declined 13 percent as operating income fell in its film-products and aluminum-extrusions businesses.
The company reported profit of $8.66 million, or 25 cents per share, compared with profit of $9.9 million, or 25 cents per share, in the second quarter of 2007.
Revenue was $234 million, down from $234.8 million in the year- earlier period.
Sales and operating profit in the company's aluminum-extrusions business were down on lower volumes as the industry continued to suffer a cyclical downturn. Sales rose in its film-products business on higher prices, but operating profit was down because of competitive pressures as higher energy costs.
Tredegar shares rose 48 cents, or 3 percent, to $16.30.
