2005 Financial Review

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Note 23 - Selected Quarterly Financial Data (unaudited)


	2005 Quarters					2004 Quarters
(In millions, except per share amounts)		1st	2nd	3rd	4th (a)		1st	2nd	3rd	4th (b)
Revenues	$	601.1	633.5	651.3	663.1	$	540.0	551.2	580.3	606.0
Operating profit		29.0	18.3	44.0	24.1		31.4	25.7	45.0	35.3
Income (loss) from:
Continuing operations	$	10.5	2.2	23.4	6.2	$	14.9	11.8	28.3	16.5
Discontinued operations		3.1	13.1	42.4	46.9		10.9	6.8	9.8	22.5
Cumulative effect of change in accounting principle		-	-	-	(5.4)		-	-	-	-
Net income	$	13.6	15.3	65.8	47.7	$	25.8	18.6	38.1	39.0
Net income (loss) per common share:
Basic:
Continuing operations	$	0.19	0.04	0.41	0.11	$	0.28	0.21	0.52	0.30
Discontinued operations		0.05	0.23	0.76	0.82		0.20	0.13	0.17	0.41
Cumulative effect of change in accounting principle		-	-	-	(0.09)		-	-	-	-
Basic	$	0.24	0.27	1.17	0.84	$	0.48	0.34	0.69	0.71
Diluted:
Continuing operations	$	0.19	0.04	0.41	0.11	$	0.27	0.21	0.51	0.29
Discontinued operations		0.05	0.23	0.74	0.81		0.20	0.13	0.17	0.41
Cumulative effect of change in accounting principle		-	-	-	(0.09)		-	-	-	-
Diluted	$	0.24	0.27	1.15	0.83	$	0.47	0.34	0.68	0.70
Dividends declared per common share	$	0.025	0.025	0.025	0.025	$	0.025	0.025	0.025	0.025
Stock prices:
High	$	39.70	37.36	41.50	49.17	$	28.38	34.47	34.29	39.91
Low		33.43	29.73	35.50	37.85		22.71	27.57	25.80	30.00

(a): The Company’s results of operations in the fourth quarter of 2005 includes an after-tax charge of $5.4 million to reflect the cumulative effect of a change in accounting principle related to the adoption of FIN 47. During the fourth quarter of 2005, the Company reached a final settlement agreement related to all claims for Federal Black Lung Excise Tax and recorded a pretax gain of $15.1 million in discontinued operations. The Company received this refund in 2006. The Company results in the fourth quarter of 2005 included a $3.0 million gain as liabilities related to reclamation were formally transferred to the buyer. During the fourth quarter of 2005 the Company repatriated cash of $71.2 million, including $22.4 million related to BAX Global’s non-U.S. subsidiaries, under the provision of the American Jobs Creation Act of 2004. The Company recorded additional income tax expense of $3.6 million in the fourth quarter of 2005, including $0.7 million included as a component of discontinued operations, related to the repatriation. During the fourth quarter of 2005, the Company recognized a $7.0 million deferred tax benefit in discontinued operations as a result of changing its intention regarding its investment in BAX Global.
(b): Income (loss) from discontinued operations in the fourth quarter of 2004 includes a $5.0 million pretax gain as a result of additional proceeds from the sale of a former coal operation, and $7.3 million of pretax income as a result of a decrease in the estimate of the Company’s obligation related to the withdrawal from coal-related multiemployer pension plans.
(c): In November 2005, the Company’s Board of Directors approved the sale of BAX Global. Accordingly, the quarterly results presented in this table have been reclassified to reflect BAX Global as discontinued operations.

At December 31, 2005, approximately $350 million of stockholders’ equity was not available for dividends to shareholders due to limitations imposed by the Company’s Revolving Facility and other lending arrangements (see note 12). Earnings per share amounts for each quarter are required to be computed independently. As a result, their sum may not equal the annual earnings per share. The Company’s quarterly financial data has been reclassified to reflect the Company’s BAX Global, natural gas, timber and gold as part of discontinued operations. The Company’s common stock trades on the New York Stock Exchange as “BCO.” As of March 1, 2006, there were approximately 2,657 shareholders of record of common stock.