New World Resources Plc (NWR) tumbled the most in two months as the biggest Czech producer of coking coal said it will curb investment after 2012 sales fell below target.
The stock tumbled 5.4 percent to 94.60 koruna by the close in Prague, the biggest drop since Nov. 13 and the worst performance in the 13-member PX (PX) index today. NWR’s share turnover was twice the daily average over the past three months.
NWR sold 9.7 megatons of coal and 555 kilotons of coke last year, less than a projected 10.3 megatons and 600 kilotons respectively, as Europe’s economic crisis and a manufacturing slowdown in China damped demand from steelmakers, the Amsterdam- based company said today in a statement.
“NWR failed to reach its targets, especially in the fourth quarter,” Miroslav Adamkovic, an analyst at Komercni Banka AS, said in a report to clients. “That’s negative for the shares.”
The company said it plans to cut capital and operating expenses by as much as 50 percent in 2013 and produce between 10 and 11 megatons of coal and 800 kilotons of coke this year.
NWR owns four mines and two coking facilities in the Czech Republic and sells to customers in central Europe, including the Czech unit of ArcelorMittal (MT), the world’s largest steelmaker. The company is scheduled to report full 2012 earnings on Feb. 21.
The stock fell 28 percent last year and 50 percent in 2011.
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