Arch Coal Drops on Lowered Guidance After Production Slows

Arch Coal (ACI) fell 6% early trading Monday after announcing that it expects production to come in light because of problems at the Mountain Laurel mines in West Virginia. Arch Coal now expects to earn $1 to $1.40 per share for the year, down from its prior estimate of $1.75 to $2.15.

“During the third quarter, Mountain Laurel encountered unfavorable geologic conditions and its longwall was idled for nearly 45 days following a roof fall in August. The longwall restarted in late September, and is currently operating in the final panel of the Alma coal seam before it transitions to the Cedar Grove seam,” the company said in a statement.

Other coal stocks were also sliding in early trading, with Peabody Energy (BTU) down 3.2%.

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