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The Heritage brands group which includes our two largest licensed footwear businesses, Caterpillar and Harley Davidson, also had a solid year with revenue up in the mid single digit range. In spite of tough trading conditions and the decision to refocus the distribution of Harley Davidson footwear in the US, the group achieved a slight revenue increase in the fourth quarter. 2007 earnings for the Heritage brands group were up double digits with a strong performance in the fourth quarter. This earnings gain reflects continued gross margin expansion, about 120 basis points and timely operational controls to offset difficult retail conditions in certain territories. As a result 2007 represents the fourth consecutive year of strong profit gains for the Heritage brands group.
The Coal division. For the third quarter of 2011, our Coal division generated earnings before interest and taxes, or EBIT of $299 million, up $95 million or 47% from the third quarter of 2010. This is the fourth quarter in a row of posting consistently strong operational results. Our low vol and high vol met coal operations generated nearly $211 million for the third quarter in EBIT, an cheapest ugg boots 5885 increase of $65 million from a year ago. If we step back to 2009, we sold about 2 million tons of met coal. We are now on pace to sell as much as 10.5 million tons of met coal in 2011. On the thermal ugg boots kids 2 games online side, we generated $88 million of EBIT, which is 52% higher than the $58 million from the third quarter of 2010. Now just a few comments on coal costs, which averaged about $55.33 a ton or about $1.33 per ton higher than we had forecasted for the third quarter. While we produce near the upper end of our forecast production and sales range, some of the cost increases were attributable to the roof issues at McElroy and Enlow Fork that we highlighted in our October 14 operations update. For the fourth quarter, we expect costs to be approximately $54 a ton across all the tons.