Alabama coal producer CanAm Coal (TSXV: COE) reported on July 14 that its second quarter 2014 coal sales were approximately 185,000 tons, up from 168,000 tons in the year-ago quarter, representing an increase of 17,000 tons or 10%.
This continues the company’s record of quarter over quarter sales improvement. despite the generally difficult coal market conditions across the country.
During second quarter of this year, the company said it continued its momentum that started to build towards the end of the first quarter as the negative effects of a colder than normal winter on operating conditions subsided and customer shipments resumed to normal or increased levels. In fact, the harsh winter throughout most of the Eastern U.S. resulted in record low coal inventories and some of customers started to rebuild their stockpiles in the second quarter and this process will continue over the next couple of months. In spite of the strong sales, shipments were negatively impacted by the shutdown of a furnace at one unnamed industrial customer.
On a year to date basis, coal sales were 353,000 tons as compared to 318,000 tons in the prior year, an increase of 35,000 or 11%.
Company President and CEO Jos De Smedt commented: “We are pleased with our Q2 and year to date performance considering the difficult winter conditions we experienced in January and February and the continued ongoing difficult coal market conditions. This performance is a testament to the high quality of our coals, the strength of our customer relationships and position us well for the remainder of 2014 as we pursue another year of record production and sales for 2014.”