Massey Energy Company Down After-Hours After Shipment Guidance (MEE)

Massey Energy Company MEE announced today that its produced coal shipments in the fourth quarter of 2010 were lower than projected in earlier guidance. The Company stated that produced tons sold for the quarter totaled 8.9 million tons, bringing the full year 2010 total to 37.1 million tons. The total produced tons sold in the fourth quarter were approximately 1.4 million tons lower than the levels incorporated in Massey's most recent guidance issued in October 2010. The lower produced tons sold in addition to charges related to the former CEO's retirement and impairments related to idled or closed mines will result in an operating loss that is greater than was previously expected. "We have great mines and the best of miners, but the challenges of the past three quarters have been difficult," said Baxter F. Phillips, Jr., Massey's Chief Executive Officer and President. "We must mine coal safely and strive to minimize regulatory violations. We are committed to improving our performance in 2011." The 1.4 million ton shortfall in fourth quarter coal shipments was largely attributable to lower than anticipated production, inconsistent rail service and delays of export shipments at the ports during the quarter. Total coal production for the quarter fell short of expectations by approximately 800,000 tons. Fewer production shifts in deep mines, which were down by about 8 percent versus prior expectations, accounted for approximately half of the production shortfall. The remainder of the production shortfall resulted from lower than expected productivity from deep mines and highwall miners and higher ratios at surface mines. Massey Energy Company and its Board of Directors continue the process of reviewing the Company's strategic alternatives. Massey will announce its fourth quarter and full year 2010 results on February 1, 2011, after the market closes.