This was primarily due to lower per ton realizations on metallurgical and Eastern thermal coal, and lower shipment volumes of Eastern and Western thermal coal.
It was partly offset by lower cost of coal sales per ton and lower selling, general and administrative expenses, the company said.
Total revenue in the first quarter was $1.3 billion, compared with $1.9 billion in the first quarter of 2012, and coal revenue was $1.1 billion, down from $1.6 billion in the year-ago period.
Alpha chairman and chief executive Kevin Crutchfield said despite the lower quarterly revenue and income figures, the company maintained a sharp focus on operational execution in the March quarter and was building on its recent strategic restructuring.
“The restructuring plan we announced in September is largely behind us, and we've taken many necessary steps to align our business with current market conditions from both an operational and capital spending standpoint,” he said.
“Going forward, we will continue to assess the need for further adjustments to our portfolio and marketing strategy where necessary to position ourselves for both sides of the commodity cycle.”
During the first quarter, metallurgical coal shipments were 5.1 million tons, compared with 4.9Mt in both the first quarter of 2012 and the prior quarter.
Alpha shipped 10.0Mt of Powder River Basin coal during the quarter, compared with 11.8Mt in the year-ago period and 11.6Mt in the prior quarter. Eastern steam coal shipments were 7.9Mt, compared with 11.5Mt in the year-ago period and 9.4Mt in the prior quarter.
The average per ton realization on metallurgical coal shipments in the first quarter was $103.28, down from $145.51 in the first quarter last year and $121.27 in the prior quarter.
Average per ton realization for PRB shipments rose slightly to $13.03, compared with $12.95 in the first quarter last year and $13.00 in the prior quarter.
The per ton average realization for Eastern steam coal shipments was $61.90, compared with $67.48 in the year-ago period and $64.55 in the prior quarter.
Across all production basins, Alpha demonstrated strong operational execution in the first three months of 2013, according to the company.
On an annualized basis shipment volumes during the quarter were pacing ahead of the midpoint of prior full-year guidance for both Eastern and Western thermal coals.
Due primarily to strong shipment volumes and the benefits of its restructuring efforts, Alpha's cost of coal sales per ton were also better than the midpoint of previous guidance.
“In particular, very strong production at the Pennsylvania longwall mines drove unit costs lower across all Eastern tons,” the company said.
“While Eastern unit costs were favorable in the first quarter, per ton costs are expected to normalize to the $69 to $73 as longwall production levels vary, and production cutbacks implemented thus far impact shipment volumes and product mix in future quarters.”
Alpha now expects to ship between 83 and 93Mt during 2013, including 19 to 22Mt of Eastern metallurgical coal, 27 to 31Mt of Eastern steam coal, and 37 to 40Mt of Western steam coal out of the PRB.
As of April 19, 2013, 73% of the midpoint of anticipated 2013 metallurgical coal shipments were committed and priced at an average per ton realization of $103.93.
Based on the midpoint of guidance, 100% of anticipated Eastern steam coal shipments were committed and priced at an average per ton realization of $61.96; and 99% of the midpoint of anticipated PRB shipments were committed and priced at an average per ton realization of $12.74.
The company's 2013 cost of coal sales is expected to range between $69 and $73/t in the East and between $10 and $11/t in the West. Selling, general and administrative expenses are anticipated to range from $140 million to $160 million for 2013.
