Coal news and updates

In a press release earlier today, SunCoke (NYSE:SXC) said it would be looking to sell off its underperforming coal mining business by the end of 2014.

 

The segment will be considered a discontinued operation in its financial statements. Already this quarter, SunCoke has gotten offers for the purchase of the segment. More details will likely come when the company holds its 2Q earnings call tomorrow morning at 11:30 a.m. Eastern time.

 

I covered SunCoke back in February. Since then, shares are essentially flat. However, they were up 6.5% in after hours after the coal sell-off announcement.

 

In the February article, I noted that:

 

"...restructuring its operations would strengthen profitability. The continued drag on the company remains its coal mining segment... As a result, the company could well be looking to sell off its coal mining business. SunCoke already buys coal for its other plants and could do so for all of its operations, meaning a sale of its coal mining business would be easier than many would expect."

 

 

Source: http://seekingalpha.com/