Alpha Natural Resources, Inc a leading U.S. coal producer, reported third quarter net income of USD 66.4 million as compared to net income of USD 31.9 million for the third quarter last year. Income from continuing operations for the third quarter was USD 66.4 million as compared to income from continuing operations of USD 32.4 million for the third quarter of 2010. Excluding certain merger-related and other unusual items described in our Reconciliation of Adjusted Income from Continuing Operations to Income from Continuing Operations, third quarter 2011 adjusted income from continuing operations was USD 79.9 million
Earnings before interest, taxes, depreciation, depletion and amortization from continuing operations for the third quarter 2011 was USD 280.1 million, as compared to USD 197.3 million in the year ago period. Excluding certain merger-related and other unusual items described in our Reconciliation of EBITDA from Continuing Operations and Adjusted EBITDA from Continuing Operations to Income from Continuing Operations, Adjusted EBITDA from continuing operations was USD 373.1 million.
Mr Kevin Crutchfield CEO of Alpha said that “Alpha again demonstrated the success of its 'Running Right' approach to safety during the third quarter. Both our Love Branch South and Enterprise operations were recognized with underground mine safety awards in Kentucky, and both operations had no lost-time accidents during 2010. We have completed 'Running Right' training for the entire hourly workforce at all legacy Massey operations, and we have begun a training program directed at supervisory personnel. The benefits are already becoming clear: incident rates at the legacy Massey operations are declining; employee feedback is overwhelmingly positive; and the annualized voluntary turnover rate for legacy Massey declined to single digits in the month of September, down from more than 20% earlier in the year. At Alpha, we understand that having an empowered workforce working together within the 'Running Right' culture is inextricably linked to our ability to operate safely, maintain strong employee morale, minimize turnover, and thereby deliver operational excellence.”
"Alpha generated adjusted EBITDA from continuing operations of USD 373 million during the third quarter of 2011. Alpha's financial results were impacted by the ongoing geological challenges at our Emerald longwall mine, a notice of force majeure from a steelmaking customer in the Middle East, and protracted quarterly price negotiations with some Asian customers that led to delayed shipments of metallurgical coal, as well as lower than expected production at several legacy Massey mines. Taking a longer view, Alpha is now well positioned for success as the third largest supplier of metallurgical coal globally, with the largest export capacity of any US producer. The integration of the legacy Massey operations remains on track, and over time we anticipate continued improvement in safety performance, enhanced productivity and meaningful synergies from fostering a unified 'Running Right' culture throughout our organization, all of which will drive value and accrue to the benefit of Alpha's shareholders.”
"In August, Alpha announced a USD 600 million share repurchase authorization, in addition to the USD 125 million authorization announced in 2010. So far this year we have repurchased approximately $200 million of Alpha's common stock, including USD 179 million since the beginning of the third quarter with which we repurchased approximately 6.7 million shares at an average price of USD 26.74 per share. The repurchases in the third quarter fully exhausted the remaining amount available under the authorization that Alpha announced in 2010 and utilized USD 100 million of the new USD 600 million authorization. We believe that shares of ANR currently represent outstanding value, and we will continue to seek opportunities to repurchase shares at attractive valuations."
