SunCoke Energy Provides 2012 Outlook
11/30/2011 - SunCoke Energy provided an outlook for its business in 2012 including guidance on coke and coal production, earnings, capital expenditures and other key financial measures.
SunCoke Energy, Inc. provided an outlook for its business in 2012 including guidance on coke and coal production, earnings, capital expenditures and other key financial measures.
“2011 was a foundational year for SunCoke and one that positioned us well for the future.” said SunCoke Energy Chairman and CEO Frederick ‘Fritz’ A. Henderson.
“In 2012, we expect adjusted EBITDA to be between $250 million to $280 million, a projected increase of at least $100 million versus 2011,” said Henderson. “We expect this projected increase will be driven by production at our new Middletown, Ohio, facility, year-over-year improvement in our Indiana Harbor operations and higher sale prices and production volumes in our coal mining segment.”
Henderson noted that the company expects to make further progress in 2012 on its long-term strategic objective to grow its global cokemaking business by focusing on entry into India and obtaining permits for a new U.S. cokemaking plant.
SunCoke also noted that capital expenditures and investments in 2012 are expected to be approximately $150 million, including a potential $30 million investment in India, versus an estimated $280 million in 2011. The lower anticipated level of capital spending reflects lower expansion capital requirements due to completion of the Middletown facility.
For 2012, the company expects free cash flow to be in excess of $50 million, corporate costs to be between $30 million to $35 million, its effective tax rate to be between 20 and 24%, and earnings per share to be between $1.30 and $1.65 based on 70 million shares outstanding.
SunCoke Energy, Inc. is the largest independent producer of metallurgical coke in the Americas, with more than 45 years of experience supplying coke to the integrated steel industry. The company utilizes an advanced, heat recovery cokemaking process that produces high-quality coke for use in steelmaking, captures waste heat for derivative energy resale, and meets or exceeds environmental standards. The company’s cokemaking facilities are located in Virginia, Indiana, Ohio, Illinois and Vitoria, Brazil, and its coal mining operations, which have more than 100 million tons of proven and probable reserves, are located in Virginia and West Virginia.
