WASHINGTON (dpa-AFX) - While reporting financial results for the first quarter on Thursday, coal producer Arch Coal, Inc. (ARCH) said it is suspending its total sales volume outlook for the full year 2020, given the current market uncertainty amid the coronavirus (COVID-19) outbreak.
However, Arch Coal is now forecasting a reduction in 2020 capital spending of $20 million, the majority of which is related to its thermal operations.
Its board also elected to suspend the quarterly dividend in order to preserve Arch's financial flexibility in light of the ongoing uncertainty around the coronavirus pandemic.
'While the board views this step as judicious in the current macroeconomic environment, we currently expect the suspension of the dividend to be temporary,' said Matthew Giljum, Arch's CFO.
During the quarter, Arch conducted a voluntary separation program in an effort to better align its corporate support structure with its current operating profile and long-term strategic direction. Initiated in late February, the program will result in a 30-percent reduction in corporate staffing levels, and should translate into annual cost savings of approximately $6 million in 2020 and between $12 million and $15 million in 2021.
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