Alpha Natural Resources’ total revenue earned during 2013 of $4.9 billion declined approximately 29% when compared to revenue earned during 2012. This is owed primarily to decreased coal revenues of approximately $1.8 billion. This decline in coal revenue is largely owed to lower sales volumes. Additionally during 2013, the company realized a 26.8% decrease in Freight and Handling revenues and Other Revenues declined a staggering 30.2%, resulting in the overall decrease of revenue. The decline in Freight and Handling revenues is directly attributed to the decrease in export shipments of coal in addition to declining freight rates. The decrease in Other Revenues is a result of significant changes in fair value adjustments for derivatives used …show more content…
This decrease significantly impacted the gross profit of the operation. Resulting in a staggering 64% decline in gross profit …show more content…
According to the 2013 Annual Report, “The decrease in cost of coal sales was owed primarily to decreased supplies and maintenance expenses, including diesel fuel and explosives, decreased merger-related expenses, decreased purchased coal expenses and decreased labor and benefit expenses primarily related to production curtailments and mine idlings implemented during 2012 and the first half of 2013, decreased credit adjustments related to changes in estimates for asset retirement obligations, and other cost control measures, and decreased sales-related and other variable costs associated with decreased metallurgical and steam coal revenues and decreased steam coal production, partially offset by increased expenses for regulatory matters” (p. 66).
On January 31st, 2011 Alpha Natural Resources acquired Massey Energy. Amortization expense of acquired intangibles increased approximately $75.4 million during 2013 when compared to the previous year. This increase in expense for amortization of acquired intangibles is largely owed to the decreased amortization of below-market contracts absorbed through the Massey acquisition. This is owed primarily to the completion of shipments under a large number of the contracts Alpha
According to ExxonMobil, for future, the company will invest on exploration for oil and gas at around $34 billion annually. However, Exxon took criticism that investing on exploration for oil and gas affects to destroy climate by recklessly extracting and burning fossil fuel reserves. The company tried to rebuild its business image. Exxon’s recent investments have been in natural gas, which pollutes less CO2 than oil when it burned. The company spends about $6 billion a year for reducing pollute. Investing on exploration for oil and gas will generate revenue in
A. Define the Problem Natureview Farm, Inc. (Natureview), a small yogurt company founded in 1989, produces and markets yogurt using natural ingredients and a distinct manufacturing method that yields a smooth, creamy texture without adding artificial thickeners. As a result of this emphasis on natural ingredients, the brand has established a reputation for high quality, great tasting yogurt and is the leading natural foods brand of refrigerated yogurt. Natureview’s yogurts – available in twelve flavors in 8-ounce cups, four flavors in 32-ounce cups, and multi-pack yogurt products – are distributed nationally and the company shares leadership in the natural food channel. In 1999, the company’s revenues grew from $100,000 to $13 million; however, despite Natureview’s success and well-established brand, the company has long battled to preserve a steady level of profitability. In 1996, Jim Wagner was hired as chief financial officer and was able to successfully achieve steady profitability for the company.
F. Alternatives: The infusion of new efficient technology combined with increased regulation leads Neptune to produce more seafood than demanded. Rising variable costs of inventory holding costs and fueling costs has diminished their margins and in turn profitability. Neptune must make a decision that not only will alleviate their growing inventory, but will also advance the company going forward.
In addition to steel prices decreasing, spot prices on iron ore, a major input of steel production, have also decreased. Matthews specifically attributes the decrease in iron ore prices to the decrease in steel prices. As steel prices decreased, steel producers were less willing to pay as high of a price for iron ore as they had been.
Company has been losing money since the first quarter of 1992. Financial fundamentals are sagging:
The history of Big Rock is that of confidence, determination and creativity. Since inception, Big Rock’s strategy has surrounded the idea of quality-first, producing great tasting products to drive sales revenues. Unfortunately, this product-first strategy has become less and less effective as time has gone on. The resulting poor performance of new products and declining profitability of previously successful products could be due to several factors.
According to the 2015 year, gross profit margin decreases when compare with the 2014 year, which decreases 16.60% due to total revenue decrease from RM64,370,096 in 2014 year to RM63,327,676 in year 2015, which is decrease as much as RM1,042,420 and the total cost of sales also increase. Total cost of sales increase because the cost of goods sold increase which due to the printing factory have increase the price of printing service, so the company of sales will decrease cause the price of goods become expenses. Thus the price of goods increase effect to the demand of goods decrease and quantity of goods sold also decrease, so the revenue decrease and gross profit of company
The 3 percent decline in sales causing a 21 percent decline in profits can be attributed to the identification of the accounting concept of operating leverage. Operating leverage is what business managers apply to boost small changes in revenue into sizable changes in profitability. Fixed cost is the force managers use to attain disproportionate changes between revenue and profitability. Therefore, when all costs are fixed every sales dollar contributes one dollar toward the potential profitability of a project. Once sales dollars cover fixed costs, each additional sales dollar represents pure profit. A small change in sales volume can significantly affect profitability (Edmonds, Tsay, & Olds, 2011). So, therefore, if sales volume increases,
The three types of teams that have been set up in Acme Minerals Extraction Company are cross-functional teams, project teams and employee teams. To begin with cross-functional teams, it is composed of member or component from different area of work responsibility. It brings together members from different functional department (Henry, M. (2009). management. (4 ed., p. 286)). For example in the case study, it is stated that Howard and Peterson initial plan was to obtain a group of people from different department to talk to each other and share thoughts. So, when they are working as one, cross-functional group will eventually be formed.
Shell Petroleum Development Company of Nigeria (SPDC) is a multinational company based in Nigeria for the last 50 years dealing with petroleum products. Apart from offering exploitation and drilling of oil in Nigeria, shell has ventured in the power generation to serve the small and medium enterprises in Nigeria. The production of oil takes place in the Nile Delta region which stretches 30km2 where the company is working in 90 oil fields with a total of 1,000 oil wells. This paper provides a long term strategy that will ensure that the company will be able to expand and be able to withstand both social and political pressure
There is an ongoing war between first and third-world countries. Countless numbers of resources were taken from the periphery, but these resources were never completely returned. As First World countries prosper, Third World countries are undergoing poverty and environmental degradation. Despite all the destruction, natural resources from the periphery fabricate new technology and advances in core countries (Africa: Resources). For example, smartphones are products of natural resource utilization, whereas deforestation is the result of natural resource exploitation in the peripheries. The manipulations of natural resources in Third World countries negatively impact the surrounding environment and people, and positively influence new aid in human technology.
The environment has been a very important aspect when it comes to power. The natural resources you can find in our environment have been used to advance and secure political, economic and social power. Most of the issues relating to our environmental features are climate change. Climate change is a factor of any power, but mostly socially. Climate change has brought together numerous countries to make a plan of action and to act on it. The control of water usage was another factor that lead to power. Another form of power from the environment was taking natural resources to create energy. Specifically, the production of oil lead to many political advances for the workers, and the companies themselves. It is also interesting to see how our world has switched energy sources and why they have based on what the environment holds available. However, being able to use these natural resources and take advantage of environmental features is what gave countries, governments, and their leaders such great power.
Effective natural resource management has increasingly become important as human interaction and destruction of resource use rises. I will examine two types of natural resource models currently used in today’s world. The two types of systems are International Organization for Standardization (ISO) 14001 Environmental Management System (EMS) and integrated adaptive management (IAM). After a comparing and contrasting the two resource models, I will provide a real world example that can use the two management systems. Finally, a third natural resource application spatial system dynamics (SSD) will be briefly discussed to see if improvements can be made to enhance EMS or IAM.
In locations where coal beds are thick and near the surface, mining costs and coal prices tend to be lower than in locations where the beds are thinner and deeper. The higher cost of coal from underground mines reflects the more difficult mining conditions and the need for more miners. It’s become common to blame the flagging fortunes of coal mining companies on low natural gas prices that have convinced many U.S. utilities and industries to slash their use of coal. But there’s another reason for the woes of mining firms: The cost of mining coal has been going up. That’s because of rising costs of transportation, explosives, wages and geology. In most areas, companies first dig coal from areas that are easiest to access and that have the thickest, richest seams. Over time, however, it becomes more expensive to mine and more difficult to do so profitably. Once coal is mined, it must be transported to consumers. Transportation costs add to the delivered price of coal. In some cases, such as in long-distance shipments of Wyoming coal to power plants in the East, transportation costs are more than the price of coal at the mine.Most coal is transported by train, barge, truck, or a combination of these modes. All of these transportation modes use diesel fuel. Increases in oil and diesel fuel prices can significantly affect the cost of transportation, which affects the final delivered price of
Associated Press. (2011). Burger King falls to 1Q loss, sales drop 8 percent. Retrieved from: http://finance.yahoo.com/news/Burger-King-falls-to-1Q-loss-apf-2850409674.html?x=0&.v=1.