Net income was $5.6 million on the back of quarterly output of 10.5 million tonnes.
Inventory for the company increased by approximately 600,000t during the quarter, as lack of railcars and locomotives delayed committed shipments.
“Production capacity continues to grow as our new mines mature and new high productivity equipment is put into service at a variety of our surface mines," Massey chief Don Blankenship said.
During the quarter the company announced it would commence a $50 million open market share repurchase program.
“We believe conducting a $50 million stock repurchase at this time, with cash on hand and within the constraints of our debt covenants, represents an attractive investment at today's stock price," the company chief said.
Blankenship remained positive on the company’s long-term outlook, saying it was in a unique position to grow its market share in Central Appalachia. He said declining availability of high Btu, low sulfur steam and metallurgical coal would enhance the pricing of Massey's coal in the coming years.
Massey maintained its 2006 guidance for shipments of 44-47Mt, with average per tonne realisations of about $50 and cash costs per tonne of $37-40.