Arch Coal Inc(NYSE:ACI) has posted impressive results for the third quarter thanks to the cost cutting measures undertaken by the company. The St. Louis based company earned a net income of $45.8 million or 22 cents a share for the July to September period. This is significantly higher than the $8.9 million or 4 cents a share it earned in the same period last year.
The adjusted income for the quarter was $41.8 million or 20 cents a share. In the previous year, it had been $7.4 million or 3 cents a share. Revenue however dropped 9 percent to $1.09 billion. Analysts had expected a loss of 15 cents a share on revenue of $1.02 billion.
Shares of ACI are up 10% to $8.03.
The Goodyear Tire & Rubber Company(NYSE:GT)’s net income for the third quarter has fallen sharply, dragged down by the demand in Europe which negated the benefits of cost cuts and profits in the North American market.
The net income of the company for the three month period ending September 30 was $110 million or 41 cents a share. This is much lower than the net income of $161 million or 60 cents a share earned in last year’s third quarter.
If restructuring costs, asset write-offs and other onetime expenses are excluded, the profits for the quarter are 53 cents a share, short of analyst expectations of 59 cents.
Revenue fell sharply to $5.26 billion, down 13 percent. Analysts had expected $5.87 billion.
While the net income fell 33 percent, income from Europe, Middle East and Africa dropped 60 percent. The company however, achieved its cost cutting target of $1 billion.
The Ohio based company expects sales in the fourth quarter to be 3 percent to 5 below the year-ago period’s figures.
The Goodyear stock fell $1.28 or 10.37 percent to $11.59.