Massey energy reports lower Q4 profit, raises guidance for shipments to steelmakers

Massey energy reports lower Q4 profit

CHARLESTON, W.Va. — Coal producer Massey Energy Co. said Tuesday a steep drop in sales cut its fourth quarter profit by more than half.

Massey said Tuesday it earned $24.4 million, or 28 cents per share, in the final three months of 2009. Analysts surveyed by Thomson Reuters expected 27 cents per share.

Massey earned $47.7 million, or 56 cents a share in fourth-quarter 2008. Last year, it adopted new accounting guidance and restated its fourth-quarter 2008 earnings, which were originally reported as $53.6 million, or 63 cents per share.

Fourth-quarter revenue dropped to $583.9 million, from $755 million in fourth-quarter 2008.

Massey upped its guidance for 2010 metallurgical coal shipments to 10 million to 12 million tons due to increasing demand from Asia, where steel manufacturers are recovering ahead of their U.S. and European competition. Massey had project 8 million to 10 million tons.

Richmond, Va.-based Massey operates mines in West Virginia, Kentucky and Virginia.