After an "exceptionally strong" month of May, Consol Energy, the largest exporter of U.S. coal and the largest producer of coal from underground mines, expects fourth-quarter earnings for the year ending June 30, to exceed analysts' expectations. The company predicts earnings could be $US0.40-0.50 per share, compared with estimates of $US0.26 per share.
Said J. Brett Harvey, president and chief executive officer: "Healthy demand for coal, particularly our high-Btu Pittsburgh Seam product, and a richer mix of business resulted in average realized prices that were higher than we forecast. In addition, our mining operations continued to perform well, with lower than forecast costs as we begin to see the benefits of our cost containment programs."
Michael F. Nemser, senior vice president and chief financial officer, added that the company's acquisition in late February of additional coalbed methane gas production also improved results but was not fully reflected in analysts' current estimates.
"Overall demand for energy continues to grow and our outlook for June is upbeat," Harvey said. "We have the right product mix in the right locations with the right technology to benefit from this market."
In the 12 months to June 1999, Consol recorded revenues of $US2.3 billion.
