Foundation Coal settles litigation with ArcelorMittal
Foundation Coal Holdings, Inc on Monday said it has reached its settlement agreement ending litigation with the world’s largest steelmaker ArcelorMittal after it had acquired by Alpha Natural Resources Inc for $1.5 billion.
It agreed to take delivery of significant volumes of metallurgical coal in 2009 and beyond after suing metallurgical coal customer ArcelorMittal earlier this year for failing and refusing to accept delivery of shipments from its Kingston mine. In result to slashes its production levels and cut 60 jobs recently to meet its current demand.
Foundation now sees 2009 coal shipments at 70 million to 73 million tons and expects 70 million to 74 million tons for 2010 and 2011 production.
Recently, the Company posted first quarter net loss of $4.5 million or $0.10 share, compared to net income of $6.2 million or $0.13 per share in a year ago and revenue of $395.3 million from $406.9 million in a year earlier.
It also set its price to western coal at $10.57 a ton for 2009 and $11.27 a ton in 2010, and expects $62.06 a ton for eastern coal in 2009 and $74.85 in 2010.
Shares of Foundation Coal rose to $2.40 to 8.18% at $31.75 in the afternoon trading.