Coal producer Massey Energy Co. reported a sharp increase in fourth-quarter profit on Tuesday, but it said it has cancelled or deferred expansion plans for 2009 due to weak market demand. The companies share price tumbled as the results missed Wall Street expectations.
For the September-to-December period, the company posted net income of $53.6 million, or 63 cents per share, compared with $5.1 million, or 6 cents per share, in the year-ago period.
Revenue rose 29 percent to $755 million from $585 million, as average produced coal revenues per ton rose to $62.89, up from $51.84 in same period last year. The company blamed weaker demand from the steel industry and lower pricing for the results.
For the year, the company said net income fell to $56.2 million from $94.1 million, as higher costs offset a revenue increase to $2.99 billion from $2.41 billion.
The company said a few projects begun in 2008 will be completed in the first half of 2009, but further expansion plans have either been deferred or cancelled in light of the changes in market conditions.
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