Arch Coal reports loss for fourth quarter, full-year 2013 - WTRF 7 News Sports Weather - Wheeling Steubenville

Arch Coal reports loss for fourth quarter, full-year 2013

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Arch Coal reported a net loss of $371.2 million in the fourth quarter and $229.2 million for 2013 on Feb. 4.

The fourth quarter results include a non-cash goodwill impairment charge of $265.4 million. Excluding the charge for goodwill impairment, early debt retirement, other one-time costs, non-cash accretion of acquired coal supply agreements and the related tax impacts of those items, Arch's adjusted net loss was $95.1 million. Arch reported an adjusted net loss of $88.7 million for the fourth quarter of 2012.

Also in the fourth quarter, Arch recorded a $12 million charge to reflect the settlement of legal claims brought by the United Mine Workers of America against Arch subsequent to Patriot Coal's bankruptcy. Arch also completed the acquisition of the Guffey metallurgical coal reserves from Patriot Coal in December 2013 for $16 million. These reserves will extend the life of the new Leer metallurgical coal mine in northern West Virginia by about three years.

In Appalachia, Arch sold more tons in the fourth quarter, but production for the year was down compared with 2012. The cash margin per ton was positive, although less than the year before. The operating margin for ton was down both in the quarter and the full year. The company's operating margin in the fourth quarter was negative $10.82 per ton.

Annual sales volumes from Arch's Appalachian mines in 2013 declined more than 4 million tons when compared with 2012, with the majority of the reduction representing thermal tons from operations that were idled in response to soft market conditions, according to the quarterly earnings report.