Despite nationwide rail problems felt throughout the industry, the company’s revenue also increased more than 15% according to its second quarter and first half results, released July 27 -- $US154 million, versus $US133.5 million last year. Period-to-period operating income spiked 217.2% to $US20.3 million, up from $US6.4 million in 2004.
“International Coal Group’s second quarter was strong in comparison to Horizon’s performance in 2004,” said ICG chairman Wilbur Ross. “We continued to show bottom line progress against the prior quarter. We achieved this increase despite inconsistent and weak rail service, rising diesel fuel prices and trucking rates, as well as wage and salary increases.”
“Although coal prices softened somewhat during the second quarter period, increased summer demand has brought about a strong rebound in prices. We remain confident that the long-term operating environment is strong.”
ICG reserves total about 510 million tons and are located primarily in Illinois, West Virginia and Kentucky. According to the company’s statement, 99% of its planned production for 2005, 75% for 2006, and 52% for 2007 has been sold as of June 30, the end of its second quarter.
