Arch Coal (ACI), a producer of thermal and metallurgical coal, saw its loss widen to $96.86 million or $0.46 a share for the quarter ended Jun. 30, 2014. In the previous year period, the company disclosed a loss of $72.21 million or $0.34 a share. Adjusted loss per share met the analysts' expectation of $0.46.

Revenue during the second-quarter dropped 6.86 percent to $713.78 million from $766.33 million in the last year period.

Operating margin for the current period stood at negative 5.02 percent as compared to negative 4.73 percent for the previous year period.

The company disclosed operating loss of $35.80 million, compared with operating loss of $36.28 million in the last year period.

"During the second quarter of 2014, increased shipments, higher pricing and strong cost control drove margin expansion in each of our operating regions compared with the first quarter," said John W. Eaves, Arch’s president and chief executive officer. "Our successful cost control efforts to date - underscored by strong operating performances at Leer in Appalachia and West Elk in Colorado have allowed us to reduce our cost-per-ton expectations for those segments in 2014."

Cash Flow

Arch Coal has spent $78.35 million cash to meet operating activities during the first half, as against cash inflow of $52.04 million in the last year period.

The company has spent $68.28 million cash to meet investing activities during the first half, as against cash outgo of $159.77 million in the last year period.

The company has spent $24.32 million cash to meet financing activities during the first half, as against cash outgo of $32.69 million in the last year period.

The company's cash dividend payment decreased 83.33 percent or $10.61 million to $2.12 million.

As on Jun. 30, 2014, the company's cash balance stood at $740.15 million, up 14.89 percent or $95.95 million from Jun. 30, 2013.

Working Capital

Arch Coal has witnessed a decline in the working capital over the last one year. The company's working capital stood at $1100 million as at Jun. 30, 2014, down $91.43 million or 7.67 percent from $1191.43 million on Jun. 30, 2013. It registered an increase in current ratio to 3.28 as at Jun. 30, 2014 from 3.11 on Jun. 30, 2013.

Shares of the company gained 18 cents or 6.12 percent to trade at $3.04 on Tuesday.