Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: FRIDAY, July 20, 1990 TAG: 9007200345
SECTION: BUSINESS PAGE: A5 EDITION: METRO
SOURCE: GREG EDWARDS BUSINESS WRITER
DATELINE: LENGTH: Medium
In the quarter ending June 30 - the company's first full quarter of mining since the strike ended - Pittston produced 3.68 million tons of coal. That compares with 2.18 million mined during the second quarter of 1989.
Pittston reported Thursday that operating profit from coal during the second quarter was $13.3 million, compared with a loss of $3.6 million during 1989's second quarter. Because of the strike, which began April 5, 1989, the best comparison for the second quarter's earnings would be the first quarter of 1989, when the company earned $11.6 million from coal, said Pittston Chairman Paul Douglas.
From all of its businesses, Pittston earned $19.3 million for the second quarter or 52 cents per share, compared with $4.5 million or 12 cents per share last year. For the first six months, Pittston reported net income of $9.2 million compared with $19.3 million in 1989.
Pittston's union-mining subsidiary, the Pittston Coal Group, "was solidly in the black" during the second quarter, said Douglas. Progress was made in improving the coal group's efficiency and productivity under terms of the new union contract, he said.
"Most of the mines and preparation plants operated by the coal group achieved productivity levels significantly in excess of those prevailing prior to the UMW strike," Douglas said. UMW employment continued to increase during the quarter as the company continued to reactivate previously idled mines, he said.
Pittston's total coal sales during the second quarter were 4.5 million tons, which included 2.2 million tons of steel-making coal sold overseas. The price of steel-making coal held firm during the quarter, but the price of coal sold to electric utilities weakened because of lower oil prices and high utility inventories due to mild winter weather.
The purchase of a coal preparation plant in Eastern Kentucky should be completed later this month, Douglas said. The company is also considering the sale of 80,000 acres of coal, timber, oil and gas land in West Virginia, he said.
Pittston is based in Greenwich, Conn. The unionized coal group is headquartered at Lebanon in Russell County.
Pittston also operates a non-union mining subsidiary, Pyxis of Abingdon, and a coal-sales company, American Eagle of Greenwich. Besides its coal business, Pittston owns Burlington Air Express, Brinks armored cars, and Brinks Home Security.
Earlier this month, Pittston announced that Douglas would retire in September 1991. On July 5, the Pittston board ratified management changes, which included naming Joseph Farrell as president and chief operating officer.
Previously, Farrell had been executive vice president in charge of Pittston's coal operations. He will be replaced in that responsibility by Gerold Spindler, who will hold the title of senior vice president.
by CNB