MARKETS

Consol: third quarter output down on forecasts

IMPROVEMENTS at mines in Northern Appalachia contributed to improved coal production for Consol Energy for the month of September but output for the quarter fell short of forecasts.

Staff Reporter
Consol: third quarter output down on forecasts

The Robinson Run, Bailey, Enlow Fork and Mine 84 operations improved period to period Consol said in its monthly overview.

Northern Appalachian mines (Bailey, Blacksville #2, Enlow Fork, Mahoning Valley, McElroy, Mine 84, Robinson Run, and Shoemaker) produced 4.1 million tons, Central Appalachian mines (Amonate, Buchanan, Jones Fork, Mill Creek, and VP #8) produced 1.2 million tons, and Midwest/West operations (Emery Mine in Utah and Consol’s portion of Glennies Creek mine) 100,000 tons.

Total coal production improved slightly in September due to the fact that September 2002 production from some mines was sold or depleted later in 2002 or 2003. The aggregate impact on coal production from these events was approximately 700,000 tons.

Correcting the ventilation system at the Loveridge Mine as a result of a fire at the mine that occurred in February 2003 will cost shareholders a loss of $0.07 per diluted share in the 2003 third quarter.

Total coal production for the September quarter improved 4.7% and production from ongoing operations improved 19.7%.

The third quarter output of 14.4 million tons fell short of earlier company forecasts of 15 million to 16 million tons.

“The earlier production forecast was based on an aggressive work schedule that limited the number of additional days of work that could be scheduled to make up for ordinary disruptions in production,” Consol said, adding that the situation should be alleviated in 2004 as additional production capacity, primarily at Loveridge and McElroy mines, is added to the system.

The company will report earnings on October 28, 2003.

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