According to financial results, local coal producer Xinergy saw its losses widen in the second quarter.

The Knoxville based company reported a net loss of USD 14.5 million or 27 cents per diluted share in the second quarter as compared to a loss of 5 cents per share in the second quarter of 2011.

In a news release, the company blamed the loss on significantly lower production and sales during the second quarter of 2012.

Mr Matt Goldfarb, the company's interim CEO, said in the release that it is managing through near term challenges in the domestic coal industry. He added that "Xinergy has taken decisive steps to align our operations for today's market environment, having idled our Raven Crest and True Energy operations as we continue our efforts to efficiently manage inventory. While we have attempted to relocate certain employees from idled operations to our South Fork mid volume met operations, we regretfully had no other option than to further reduce workforce as we continued to curtail production to match a lower demand environment."

The company reported coal revenue of USD 23.1 million in the quarter, down from USD 40.6 million a year ago.

Source - Knoxville News Sentinel Co

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