SunCoke Energy, Inc. reported third quarter 2012 net income attributable to shareholders of $31.6 million, up from $18.2 million in third quarter 2011.

"Our third quarter performance demonstrates the power of a consistent focus on operational excellence," said Fritz Henderson, Chairman and Chief Executive Officer of SunCoke Energy, Inc. "Our entire U.S. cokemaking fleet continued to deliver strong results, with our new Middletown facility fueling a significant portion of the increase. Adjusted EBITDA increased 62% to $72.4 million in the third quarter and U.S. Domestic Coke Adjusted EBITDA per ton at $61 exceeded our target."

Henderson continued, "Our coal mining segment finished the quarter up slightly as a result of higher year-over-year sales prices and volumes and the favorable impact of a contingent consideration adjustment. However, higher production costs and reject rates offset most of this benefit. In light of the continuing weak coal environment, we are taking more aggressive actions to reduce costs and improve productivity in our coal mining business to position ourselves for 2013."

Henderson added, "With year end approaching, we have a clearer view into our 2012 expected results and estimate that full year 2012 Adjusted EBITDA will be $255 million to $270 million and 2012 capital expenditures will total about $75 million."

Consolidated Results
Total revenues rose 19% to $480.5 million in third quarter 2012, largely driven by sales at our new Middletown facility, which contributed $76.7 million to revenue. The climb in operating income and Adjusted EBITDA, which grew 76% and 62%, respectively, reflected the contribution of our Middletown facility, lower corporate costs and continued solid performance across all our cokemaking facilities. The 74% increase in net income attributable to shareholders in third quarter 2012 was led by the contribution of our Middletown facility and lower corporate costs. This increase was partly offset by financing costs related to our standalone corporate structure.

Segment Results

Jewell Coke
The Jewell Coke segment consists of our cokemaking operations in Vansant, Virginia. Substantially all of the metallurgical coal used at our Jewell cokemaking facility is supplied from our coal mining operations. Beginning in first quarter 2012, the intersegment coal costs charged to the Jewell Coke segment are reflective of the contract price Jewell Coke charges its customer. Prior year periods have been adjusted to reflect this change.

Other Domestic Coke
Other Domestic Coke consists of cokemaking facilities and heat recovery operations at our Indiana Harbor, Haverhill, Granite City and Middletown plants. The Middletown cokemaking facilitycommenced operations in October 2011. On 30 September 2011, we increased our ownership interest in the partnership that owns the Indiana Harbor cokemaking facility from 66% to 85% by acquiring the interest held by one of the unaffiliated third-party partners.

International Coke
International Coke consists of a cokemaking facility in Vitória, Brazil, which we operate for a Brazilian affiliate of ArcelorMittal. International Coke earns operating and technology licensing fees based on production, and recognizes a dividend on its preferred stock investment, generally in the fourth quarter, assuming certain minimum production levels are achieved at the facility.

• Segment Adjusted EBITDA declined from $1.7 million to $0.9 million primarily due to lower sales volumes.

Coal Mining
Coal Mining consists of our metallurgical coal mining activities conducted in Virginia and West Virginia. A substantial portion of the metallurgical coal produced by our coal mining operations is sold to our Jewell Coke segment for conversion into metallurgical coke. Beginning in first quarter 2012, intersegment coal revenues for sales to the Jewell Coke segment are reflective of the contract price Jewell Coke charges its customer. Prior year periods have been adjusted to reflect this change.

2012 Outlook
The following summarizes the Company’s 2012 guidance:

• Earnings per share (assuming a 22% tax rate) is expected to be between $1.30 and $1.40
• Full year 2012 Adjusted EBITDA is projected to be between $255 million and $270 million
• Capital expenditures and investments are anticipated to be approximately $75 million
• Corporate costs are expected to be between $29 million and $32 million
• Domestic coke production is expected to be in excess of 4.3 million tons
• Coal production is projected to be approximately 1.4 million tons
• Free cash flow is expected to be in excess of $100 million
• The effective tax rate for the full year 2012 is expected to be between 20% and 24%, and the cash tax rate is expected to be between 10% and 15%