Arch Coal Reported Full Year 2007 Results

ST. LOUIS, MO - Arch Coal, Inc. reported fourth quarter 2007 net income available to common shareholders of $81.3 million on income from operations of $75.1 million and adjusted earnings before interest, taxes, depreciation and amortization ("EBITDA") of $142.9 million. In the fourth quarter of 2006, the company earned net income available to common shareholders of $79.5 million on income from operations of $60.5 million and adjusted EBITDA of $117.7 million.
For the full year 2007, Arch earned net income available to common shareholders of $174.7 million compared with $260.6 million for full year 2006. The company also earned $471.7 million of adjusted EBITDA in 2007, compared with $545.0 million in 2006, when market conditions were more favorable.
"During 2007, Arch Coal achieved our second-best year of earnings in the company's 10-year history as a public corporation," said Steven F. Leer, Arch's chairman and chief executive officer. "We are proud of the financial performance achieved in 2007, especially considering the weakened state of U.S. coal markets during much of the year. Also, we are particularly pleased with our fourth quarter results, which benefited from strong execution at our mines as well as positive momentum in global coal markets."
"Looking ahead, we are optimistic that domestic coal markets will continue to improve in 2008, driven by the strength of international coal markets," continued Leer. "We also expect the company to deliver a record performance in 2008, with meaningful expansion in operating margins, earnings per share and EBITDA."
"Our operations ran exceptionally well during the fourth quarter, and turned in a solid performance for the full year 2007," said John W. Eaves, Arch's president and chief operating officer. "Each operating region made a substantial contribution in the quarter just ended, particularly in terms of cost containment and margin expansion. We applaud these efforts and look to build upon this performance in 2008."
The company's address is One CityPlace Dr., Suite 300, St. Louis, MO 63141, 314.994.2700.