Patriot Coal posts 2Q loss on higher costs

ST. LOUIS

Patriot Coal Corp. on Tuesday reported a loss for its second quarter, reversing a year-ago profit, after higher operating costs erased a 6.3 percent increase in revenue.

Shares of Patriot Coal fell by $1.27, or 9.3 percent, to $12.40.

The coal producer had a net loss of $13.6 million, or 15 cents per share, compared with a profit of $31.4 million, or 39 cents per share, in the same period a year ago.

The quarter included $14.8 million in restructuring and impairment charges related to the closing of a mine whose roof caved in. The period also had a $17.8 million gain related to a deal in which the company swapped reserves.

Operating costs rose by 7.5 percent in the second quarter from a year ago.

Revenue rose to $539 million from $507 million.

Analysts were expecting a loss of 34 cents per share on revenue of $526.1 million. The estimates typically exclude one-time items.

Patriot Coal said it expects regulatory oversight to step up through the year, which will result in lower production and higher costs per ton.