Financial bonanza

Peabody Energy Corp. first-quarter profit tripled on higher coal prices and lower interest expenses and taxes. But sales and earnings fell short of Wall Street expectations, sending the company’s shares lower.

The mining company also announced further production cuts in response to weak energy markets.

"Peabody is weathering curerent market challenges with a strong balance sheet and cash flows, heavily contracted position and tight capital discipline," Chief Executive Gregory H. Boyce said in a statement. "We are also aggressively evaluating investments to capitralize on unique market opportunities."

Peabody’s net income rose to $170 million, or 63 cents a share, from $57 million, 21 cents in the same period a year ago, the company said. Sales rose 15 percent to $1.46 billion, mostly on the strength of an increase in coal pricing.

Excluding discontinued operations, St. Louis-based Peabody earned 50 cents a share compared with 28 cents a share in last year’s first quarter no fax quick cash. But analysts surveyed by Thomson Reuters expected earnings per share of 94 cents on sales of $1.62 billion.

First-quarter coal sales fell slightly to 59.6 million tons because of previously announced production cuts, weather in Wyoming’s Powder River Basin and deferred customer shipments in Australia.

Peabody was paid 16 percent higher prices on coal shipments because of previously signed sales contracts. Coal prices have declined since those agreements were signed in sympathy with demand for fuel to produce electricity and steel.

The company said first-quarter costs rose despite the decline in output because of ongoing work at Australian mines, higher royalties and sales-related taxes and lower planned production rates.

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