National Coal Corp. falls on wider Q2 loss
Shares of National Coal Corp. (Nasdaq: NCOC) have burrowed lower on news before the opening bell that the coal producer reported a wider second-quarter net loss and missed analysts’ expectations.
The net loss for the three months ended June 30 was $6.5 million, or $0.38 per share, while one analysts polled by Thomson Financial was calling for a net loss of $0.18 per share. A year earlier the Knoxville, Tenn.-based company had a net loss of $4.9 million, or $0.34 per share.
“Recent market conditions have not been conducive to selling coal at a profit, therefore, we have chosen to reduce production and sales in order to conserve our coal reserves,” said President and CEO Daniel Roling.
National Coal, which employs about 230 people and produces coal from mines in Tennessee and Kentucky, booked revenues of $18.9 million for the second quarter, a decline of 21.6% from $24.1 million a year earlier. Wall Street was expecting revenues of $20.51 million.
The company ended the second-quarter having sold approximately 372,341 tons of coal, 18.3% less compared with the 455,548 tons sold a year ago.
The stock is down $0.40, or 12%, to $2.85, at 3:43 p.m. ET.
