Patriot Coal Slumps 13% On Lower Production, Plant Idlings

[Stocks-to-Watch]

Patriot Coal (PCX) is falling nearly 13%, to less than $8 on news it is curtailing production in the face of weak demand and high operating costs.

Today the company said it would idle five southern West Virginia mines to align it with current market trends, as recent weeks have seen a drop off in demand for metallurgical coal.

“As world economies return to normal growth rates, we expect a resumption of the longer-term growth trend for metallurgical coal demand that should allow us to bring much of this production back on line,” said Chief Executive Richard Whiting.

The shares are sliding back toward their October lows under $7, and are well off their February 2011 52-week high of $29.20.



Original Article Source by Barrons.com