Coal miner Peabody Energy Corp. (BTU), Tuesday said its third quarter profit declined from last year, hurt by lower demand mainly in the U.S. The company, however, raised the lower end of its production outlook for 2009, due to the increasing demand for seaborne met and thermal coals in China and India.
Peabody's third quarter net income attributable to common stockholders was $106.8 million or $0.40 per share, down from $369.5 million or $1.35 per share in the prior year quarter.
The world's largest private-sector coal company's net income for the quarter slipped to $110.8 million from $371.8 million in the year-ago quarter.
Income from continuing operations fell to $113.2 million or $0.41 per share from $383.2 million or $1.39 per share in the previous year quarter.
Excluding the remeasurement of foreign income taxes, adjusted income from continuing operations was $135.5 million or $0.49 per share, down from $320.5 million or $1.16 per share in the third quarter of 2008.
On average, 22 analysts polled by Thomson Reuters expected the company to report earnings of $0.23 per share for the third quarter. Analysts' estimates typically exclude special items.
Third quarter revenues declined 11.5% to $1.67 billion from $1.89 billion in the same quarter last year. Ten analysts had a consensus revenue estimate of $1.42 billion for the third quarter.
Revenue from U.S. mining operations rose 9.6% to $1.01 billion, while revenue from Australian mining operations dipped 31% to $537.3 million. Revenue from trading and brokerage operations slumped 38% to $112.9 million from a year ago.
Sales volumes for the quarter decreased 3% to 63.5 million tons from 65.6 million tons in the prior year quarter.
U.S. revenues per ton increased 11% over a year ago, due to higher realized prices in both the Midwestern and Western regions.
The St. Louis, Missouri-based company said that the Pacific markets continue to strengthen, led by China's and India's demand for seaborne met and thermal coals.
In a move to tap the heavy demand from these regions, Peabody Energy opened a new Southeast Asian trading hub in Singapore during the quarter. The company also recently established a new business center in Indonesia, and it plans to further expand its international investments.
For the nine-month period of 2009, net income attributable to common stockholders was $356.0 million or $1.32 per share, compared to $659.8 million or $2.42 per share in the previous year period.
Adjusted income from continuing operations fell to $413.5 million or $1.49 per share from $678.3 million or $2.46 per share in the prior year period.
Revenues for the period declined to $4.46 billion from $4.67 billion in the year-ago period.
For fiscal 2009, Peabody Energy anticipates earnings from continuing operations of $1.34 to $1.54 per share including the tax remeasurement to date, and adjusted earnings from continuing operations of $1.60 to $1.80 per share. The Street currently estimates earnings of $1.48 per share for the year.
Total company sales are currently expected to be 235 to 245 million tons, including Trading and Brokerage contributions, compared to previous estimate of 225 - 245 million tons.
Peabody Energy is currently trading at $43.74, up 37 cents on a volume of 6.40 million shares.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.