upgrades guidance

DJ Macarthur Coal Upgrades 1H Guidance After Strong Sales Volumes15/01/2010 09:52AM AEST
SYDNEY (Dow Jones)--Metallurgical coal producer Macarthur Coal Ltd. (MCC.AU) upgraded its earnings guidance for the first half of fiscal 2010 after sales volumes during the six months to December beat expectations.

In a statement, Macarthur Coal said it now expects first half profit of between A$37 million and A$42 million, up from its November forecast of A$30 million to A$38 million.

Sales volumes in the first half were 2.8 million tons, also beating guidance of up to 2.7 million tons, after strong production and sales in the second quarter, favourable weather conditions and an earlier than expected loading of coal exports at Dalrymple Bay Coal Terminal in Queensland state.

The company also lifted its full year sales forecasts to between 4.8 million tons and 5.0 million tons, with seasonal weather effects and coal chain restrictions expected to continue.

Macarthur Coal CEO Nicole Hollows also warned that lack of progress in securing water and rail infrastructure meant that it was now unlikely to ship any coal from its new Middlemount project in fiscal 2011.