Roundup: Foundation Coal, Honest Tea, Sallie
From staff and wire reports
*Foundation Coal Holdings of Linthicum Heights said posted a second-quarter loss of $4.4 million (10 cents a share), compared with a loss of $3.8 million (8 cents) in the comparable period a year earlier. Revenue grew 12 percent, to $411.9 million. Results were hurt by roof problems at mines in Northern Appalachia and lower-than-expected shipments from the West because of flooding and rain in Wyoming and the Midwest.
CEO James F. Roberts said the company was disappointed with the results but expected better results in the second half of the year. Coal exports are up, driven by China's need for fuel.
"Clearly, we see a tremendous opportunity to leverage our approximately 21 million tons of annual production in the East based on current market conditions," Roberts said in a statement. "We continue to plan for organic growth at Foundation."
*Coca-Cola's biggest bottler said it would begin distributing Honest Tea in certain West Coast markets, the first step to give the brand nationwide distribution at more mainstream grocery stores, gas stations and other outlets. Coca-Cola bought a 40 percent stake in Honest Tea in February for $43 million, putting the total value of the organic tea maker at about $110 million.
*Investment adviser Westchester Capital Management will be lead plaintiff in a lawsuit against Sallie Mae brought by investors claiming the student lender hid that it lacked adequate reserves for loans to subprime borrowers. U.S. District Judge William Pauley in Manhattan appointed Westchester Capital, adviser to two funds that lost more than $30 million after SLM shares fell, to lead the class-action lawsuit.
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