LISLE, Ill. (AP) — SunCoke Energy Inc. said Tuesday that it expects lower coal prices to result in a year-over-year drop in a key profit figure next year. Shares of the company, a major supplier of coal used by the steel industry, fell sharply in morning trading.
The Lisle, Ill.-based coal producer said that while its cokemaking operations continue to perform well, average sale prices at its coal mining business are expected to be down by more than $40 per ton.
Recommended Stories
As a result, SunCoke said it expects its 2013 adjusted earnings before interest, taxes, depreciation and amortization to total between $205 million and $230 million, down about $40 million to $50 million from 2012 levels.
Analysts polled by FactSet expected EBITDA of $240.8 million.
In order to help offset the effects of lower coal prices, SunCoke said it’s speeding up the execution of a plan designed to boost efficiency and cut costs at its Jewell underground mining operations. The company said it also plans to increase volumes sourced from its Revelation surface mining venture and purchases of lower-priced third-party coal next year.
Total 2013 coal sales are projected to be 1.7 million tons, up from an estimated 1.5 million tons this year, SunCoke said.
Shares of the company fell $1.38, or 8.8 percent, to $14.51 in morning trading Tuesday. Its shares have fallen 18 percent from a 52-week high of $17.59 in mid-September. They traded as low as $10.34 almost a year ago.
