Massey reported a narrower second quarter loss than expected as lower production costs offset decreased coal production. The Virginia-based company posted a net loss of $2.2 million, compared to a loss of $16.5 million in the year-ago period when it was hit by a large legal related charge.

Overall revenues fell to $393.4 million from $402.5 million.

The company reported that marketplace demand and Massey's coal shipments were negatively impacted during the quarter by a continuation of the weak U.S. economy, a cool early summer and record rainfall.

"We were pleased, nevertheless, to increase our committed tonnage for 2004 by over 6 million tons compared to the end of the first quarter," Massey CEO Don Blankenship said.

The company reported that further industry production decreases throughout Central Appalachia and the high price of natural gas kept pricing firm as more utilities re-entered the market to negotiate contracts.

Operations at Massey's Rockhouse longwall resumed, as projected, during early May with its newly installed higher horsepower shearer.

"Operations management so far is very pleased with the greater cutting productivity afforded by this new equipment," he said.