SWOT ANALYSIS ON Arch Coal

abhishreshthaa

Abhijeet S
Arch Coal (NYSE: ACI) is an American coal mining and processing company. The company mines, processes, and markets bituminous and sub-bituminous coal with low sulfur content in the United States. Arch Coal is the second largest supplier of coal in the U.S. behind Peabody Energy. [3] The company supplies 16% of the domestic market. [4] Demand comes mainly from generators of electricity.

Arch Coal operates 21 active mines and controls approximately 3.1 billion tons of proven and probable coal reserves, located in Central Appalachia, the Powder River Basin, and the Western Bituminous regions.[6] The company operates mines in Colorado, Kentucky, Utah, Virginia, West Virginia and Wyoming, and is headquartered in St. Louis, Missouri.[7] The company sells a substantial amount of its coal to producers of electric power, steel producers and industrial facilities.


Strengths

* Diversified business portfolio
* Strong research & development (R&D)
* Order backlog guarantees business flow in the future
* Strong management & culture in terms of people, systems, technology and measures

Weaknesses

* Bets on financial markets have proven unsuccessful with economic turmoil
* Weak revenue growth of industrial segment
* Underperforming in Asian markets
* Leveraged

Opportunities

* Development of infrastructure
* Aviation industry growth
* Increasing global exploration and production
* Servicing and regeneration of commercial airplanes around the world

Threats

* Senior management - weak performance by GE has put doubts on Jeff Immelt's ability to be the next Jack Welch
* Rising commodity prices
* Exposure to financial markets
* World economic slowdown in the US and Eurozone, two of the most important markets for GE


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