International Coal Group Reports Second Quarter 2009 Results
Tuesday, July 28th, 2009
International Coal Group, Inc. (NYSE:ICO) report its results for the second quarter of 2009.
— Adjusted EBITDA, or earnings before deducting interest, income taxes, depreciation, depletion, amortization and minority interest, was $52.2 million for the second quarter of 2009 compared to $55.2 million for the second quarter of 2008. The 2008 second quarter results included a $24.6 million gain realized on a property exchange, whereas the 2009 second quarter results include a $7.7 million gain related to the termination of a below-market coal supply agreement.
— Net income was $10.4 million, or $0.07 per share on a diluted basis, for the second quarter of 2009 compared with net income of $13.8 million, or $0.08 per share on a diluted basis, for the same quarter last year.
— Revenues were $277.8 million for the second quarter of 2009 compared to $277.9 million for the second quarter of 2008.
— Margin per ton sold increased 55% to $11.32 in the second quarter of 2009, compared to $7.31 for the same period last year, due to higher realized prices and improved cost performance.
“We enjoyed solid second quarter operating performance despite extraordinary weakness in the coal markets and the economy overall,” said Ben Hatfield, President and CEO of ICG. “The recession-driven drop in industrial electricity demand, which in some regions fell to 20% below the norm, led to dramatic inventory growth that forced many utilities to delay scheduled contract shipments in addition to eliminating spot coal purchases. These factors, coupled with unexpected operating difficulties at three key customer facilities, reduced our anticipated shipments by more than 600,000 tons during the quarter.”
Hatfield continued, “We have moved quickly to mitigate the impact of reduced utility sales by selectively curtailing approximately 1.4 million tons of higher-cost production at our Raven, Hazard, and Eastern mining complexes. Those second quarter changes bring our year-to-date production adjustments to approximately 3.3 million annual tons.”
Hatfield concluded, “Despite the difficult economic climate, we are cautiously optimistic that the worst of the market weakness is behind us as metallurgical shipments have increased recently and utility prices appear to have stabilized. Nevertheless, the global economic climate remains uncertain and we intend to remain vigilant in monitoring costs and production levels.”
For further information visit: www.intlcoal.com