Bloomberg reported that Alpha Natural Resources Inc and Walter Energy Inc two US producers of coal used in steelmaking tumbled after they cut output and sales forecasts respectively.

Abingdon Virginia based company said in a statement that Alpha full year production will be 102.5 million to 109.5 million tonnes compared with a previous prediction of 104 million to 112 million tonnes. Alpha cited unexpectedly curtailed customer activity in Asia and lower than expected output from some mines.

The Birmingham, Alabama based company said in a statement that Walter second half sales will be at a similar level to the 5.2 million tonnes recorded for the first half. Its previous forecast for second half revenue was 5.9 million tons.

Alpha and Walter are both trying to integrate mines bought earlier this year in separate acquisitions. Alpha bought Massey Energy Co for USD 7.1 billion in June and said output from some Central Appalachian Massey mines has disappointed. Walter purchased Western Coal Corp. for CAD 5.3 billion in April giving it production in British Columbia. Rainfall in the province has curbed output.

Walter said third-quarter earnings will be USD 1 to USD 1.16 a share. The average of 15 analysts estimates compiled by Bloomberg was for USD 3.24. The company also forecast fourth quarter earnings of USD 2.63 to USD 2.95 a share. The average from the analysts' estimates was for USD 3.17.

The company said it's dealing with difficult geology at its Mine Number 7 in Alabama.

(Sourced from Bloomberg)