Alliance earnings plummet

US COAL producer Alliance Resource Partners announced second quarter earnings of $US8.53 million, down almost 40% from 2002 June quarter earnings.

Staff Reporter

The company said revenue grew 5.2% from the previous quarter, due to higher sales volumes partially offset by lower sales prices. Overall revenue rose to $US133.5 million from $US126.8 million a year ago.

Operating expenses mushroomed due to increased sale volumes coupled with low productivity at Hopkins County Coal, Pattiki and Mettiki, resulting in higher per tonne costs for the company.

Operating expenses were also added to through increased workers' compensation costs of about $US1 million and additional general and administrative expenses of $US1.6 million associated with the company's long-term incentive plan.

Alliance re-assessed its predicted earnings to be in the range of $US35 million to $US42 million. At the beginning of the year the company were expecting between $US30 to $US40 million.

Alliance Resource Partners operate seven underground mines and one combined surface and underground operation with locations in the Illinois Basin, East Kentucky and Maryland.

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