Jul

20

Peabody Energy profit jumps..

July 20, 2010 | Leave a Comment

TORONTO – US coal producer Peabody Energy earned income from continuing operations of $214,7-million in the second quarter, up 138% from $90-million a year earlier, the company reported on Tuesday.

Results were boosted by strong increases in volumes from the company’s Australian operations, as well as higher prices for metallurgical coal.

On a per share basis, adjusted income from continuing operations rose 38%, to $0,69 a share, which was above analyst consensus expectations.

Peabody, which mines coal in the US and Australia, said that earnings before interest, tax, depreciation and amortisation (Ebitda) rose 35% year-on-year, to $440-million, and revenue was up 24%, to $1,66-billion, helped by an almost doubling of revenue from Australian operations.

“Our global platform is expected to continue to capitalize on rising volumes and prices, and the continuation of our strong operating performance,” CEO Gregory Boyce said in a statement.

“We expect second half results to be stronger than the first.”

Peabody said it has raised the midpoints of its 2010 earnings targets, and is now expecting adjusted earnings per share of between $2,60 and $3,15 a share, excluding currency remeasurement.

Full-year Ebitda is forecast at between $1,7-billion and $1,9-billion.

The company sold 59,7-million tons of coal in the second-quarter, slightly higher that the 59,4-million tons reported for the same period of 2009.

Quarterly sales were helped by a 28% increase in Australia shipments,

Peabody has maintained its 2010 sales guidance of 240-million to 260-million tons, including US production of between 185-million and 195-million tons and Australia production of 27-million to 29-million tons.

Shares in the company slid 0,3% on Tuesday morning, to $42,19 apiece by 10:00 in New York.


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