Foundation Coal Holdings / FCL

About Foundation Coal Holdings

999 Corporate Blvd., Suite 300, Linthicum Heights, Md. 21090
www.foundationcoal.com | 410-689-7500 | Founded: 2004

Industry: Energy | Category: Public Companies

Foundation Coal took a hit in 2006. Earnings fell to $31.4 million compared with $88.9 million the year before, as the company's costs increased and some of its mining operations suffered from weak performance.
Coal sales increased 11 percent in 2006, and the firm benefited from new higher-priced contracts in some parts of its operation, such as the Powder River Basin in Wyoming. But other areas of the operation, such as the Illinois Basin, suffered from depleted resources or difficult mining conditions, resulting in lower shipments and sales. Costs also rose because of equipment repairs and higher labor expenses.
In September 2006, the company spent $15.4 million to buy land next to its Pax Mine operation in West Virginia, which it expects will contribute to additional capacity and production growth. The property is expected to yield an additional 720,000 tons of coal annually.
In February, the company said it would suspend plans announced last year to invest $50 million in improvements to the company's Wabash Mine in Illinois, citing unfavorable economics. In April, it announced plans to close Wabash.

2006 Financial Data

Revenues: $1,470,321,000 | Net Income: $31,419,000
Asssets: $1,949,580,000 | Earnings Per Share: $0.67
Stockholder Equity: $297,813,000 | Annual Dividend: $0.20
Total employees: 3,153 | Local employees: 112