SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
----------------------------
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): April 8, 2003 (April 8, 2003)
Arch Coal, Inc.
(Exact name of registrant as specified in its charter)
Delaware 1-13105 43-0921172
(State or other jurisdiction (Commission File Number) (I.R.S. Employer
of incorporation) Identification No.)
One CityPlace Drive, Suite 300, St. Louis, Missouri 63141
(Address of principal executive offices) (Zip code)
Registrant's telephone number, including area code: (314) 994-2700
Page 1 of 4 pages. Exhibit Index begins on page 4.
Item 5. Other Events.
On April 8, 2003, Arch Coal, Inc. (the "Company"), announced via press
release the Company's expectations for first quarter results and the receipt of
$52 million related to a buyout of an above market contract. A copy of the
Company's press release is attached hereto and incorporated herein by reference
in its entirety.
Item 7. Financial Statements and Exhibits.
(c) The following Exhibit is filed with this Current Report on Form 8-K:
Exhibit No. Description
99 Press Release dated as of April 8, 2003
Page 2 of 4 pages. Exhibit Index begins on page 4.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
Dated: April 8, 2003 ARCH COAL, INC.
By: /s/ Janet L. Horgan
Janet L. Horgan
Assistant General Counsel and
Assistant Secretary
Page 3 of 4 pages. Exhibit Index begins on page 4.
EXHIBIT INDEX
Exhibit No. Description
99 Press Release dated as of April 8, 2003
Page 4 of 4 pages.
Exhibit 99
News from
Arch Coal, Inc.
FOR FURTHER INFORMATION:
Deck S. Slone
Vice President,
Investor and Public Relations
(314) 994-2717
FOR IMMEDIATE RELEASE
April 8, 2003
Arch Coal, Inc. announces expectations for first quarter results
and receipt of $52 million related to buyout of an above-market contract
St. Louis - Arch Coal, Inc. (NYSE:ACI) announced today that it expects to
report for its first quarter ended March 31, 2003 a net loss of $.27 per share
before an estimated $.07 per share non-cash charge related to the cumulative
effect of an accounting change resulting from the implementation of FAS 143
governing the retirement of asset obligations.
"During the first quarter, coal demand remained depressed as power
generators continued to pull coal from stockpiles rather than purchase spot
volumes," said Steven F. Leer, Arch Coal's president and CEO. "In response, Arch
cut production still further at both its eastern and western operations. Despite
the adverse impact of this strategy on our near-term financial performance, we
continue to believe that it is imprudent and unwise to sell our uncommitted tons
into the current spot market, at prices that fail to provide an adequate return
on investment."
During the first quarter, Arch produced 1.5 million fewer tons in the west
and 1.2 million fewer tons in the east when compared to the first quarter of
2002, when production was already constrained.
Leer indicated that market fundamentals provide reason for optimism in the
year's second half. "Electricity demand increased an estimated 4% in 2002,
according to Edison Electric Institute; U.S. coal production fell by an
estimated 35 million tons during the year; and utility stockpiles were nearly
20% lower at the end of March compared to 12 months earlier. Eventually, power
generators will need to re-enter the market, and that should provide an impetus
for improving coal demand and pricing."
Arch also announced that it had agreed to terms with a large customer
seeking to buy out of the remaining term of an above-market contract. The buyout
will result in the receipt of approximately $52 million in cash during the
second quarter. Arch will record a deferred gain of approximately $15 million,
which will be recognized ratably through 2012.
Arch will release its first quarter earnings announcement before market on
Monday, April 21. A conference call will be conducted at 11 a.m. EDT on that
same day. The webcast will be accessible via the "investor" section of the Arch
Coal Web site at www.archcoal.com. Following the live event, replays of the
webcast will be available on the site for approximately three weeks.
Arch Coal is the nation's second largest coal producer, with subsidiary
operations in West Virginia, Kentucky, Virginia, Wyoming, Colorado and Utah.
Through these operations, Arch Coal provides the fuel for approximately 6% of
the electricity generated in the United States.
Forward-Looking Statements: Statements in this press release which are not
statements of historical fact are forward-looking statements within the "safe
harbor" provision of the Private Securities Litigation Reform Act of 1995. These
forward-looking statements are based on information currently available to, and
expectations and assumptions deemed reasonable by, the company. Because these
forward-looking statements are subject to various risks and uncertainties,
actual results may differ materially from those projected in the statements.
These expectations, assumptions and uncertainties include: the company's
expectation of continued growth in the demand for electricity; belief that
legislation and regulations relating to the Clean Air Act and the relatively
higher costs of competing fuels will increase demand for its compliance and
low-sulfur coal; expectation of continued improved market conditions for the
price of coal; expectation that the company will continue to have adequate
liquidity from its cash flow from operations, together with available borrowings
under its credit facilities, to finance the company's working capital needs; a
variety of operational, geologic, permitting, labor and weather related factors;
and the other risks and uncertainties which are described from time to time in
the company's reports filed with the Securities and Exchange Commission.