DOW JONES NEWSWIRES
Consol Energy Inc.'s (CNX) first-quarter net income soared 76%
on higher coal prices as its unit CNX Gas Corp. (CXG), of which it
owns 80%, posted a 10% increase in net income attributable to
shareholders.
Consol cut its full-year production target to 62 million tons
from 63 million tons because of lower demand for coal and said it
expects 14.9 million tons of production in the second quarter. CNX
raised its full-year production guidance to 85 billion to 87
billion cubic feet.
U.S. coal producers have been wrestling with weak demand,
falling exports and a slide in prices. Analysts and investors have
said first-quarter results for the industry are likely to benefit
from sales contracts inked last year at a time of record prices.
But many mines are slashing production in the face of slowing
demand from the steel and power sectors amid the recession.
Chief Executive J. Brett Harvey called the period "one of the
best quarters in the company's history." He added the company is
"aggressively" managing production at its mines amid declines in
demand.
Consol posted net income of $205 million, or $1.08 a share, up
from $84.2 million, or 41 cents a share, a year earlier.
Revenue increased 19% to $1.22 billion.
Analysts surveyed by Thomson Reuters expected earnings of 93
cents on revenue of $1.23 billion.
Price per ton rose 37% to $59.63.
Meanwhile, CNX reported net income attributable to common
shareholders of $54.9 million, or 36 cents a share, up from $49.9
million, or 33 cents a share, a year earlier. Revenue rose 11% to
$178.4 million. Analysts expected earnings of 33 cents on revenue
of $184 million.
CNX Gas said production was 22 billion cubic feet as per-day
production rose 38% from a year earlier.
Harvey said net income was strong for the company thanks to
higher production and its hedging program.
Consol's shares closed Wednesday at $25.90 and CNX's closed at
$23.21. Neither has traded premarket Thursday.
-By Kerry E. Grace, Dow Jones Newswires; 201-938-5089;
kerry.grace@dowjones.com
