James River Coal Co's quarterly profit has beaten expectations, boosted by a 73 percent jump in the average price of Central Appalachian coal (CAPP), but said it would adjust production volumes to keep pace with the softness in the coal market.
CAPP average sales price rose to $90.91 per ton, compared with $52.56 per ton, in the year-ago quarter because of some new contracts signed by the company.
For the first quarter, the coal producer swung to a net profit of $28.2 million, or $1.03 a share, compared with a net loss of $16.7 million, or 78 cents a share, a year earlier.
Revenue at the Richmond, Virginia-based company rose 39 percent to $192.1 million.
"In response to the weak coal markets, we are continuing to adjust our production through small changes to our work schedules for the remainder of 2009," Chief Operating Officer C.K. Lane said in a statement.
The company, whose operations are located in the Central Appalachian basin of the United States, mines and sells bituminous, steam and industrial-grade coal in Kentucky and Indiana.
Source: Reuters
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