Peabody Falls on Earnings Miss; U.S. Demand Diminishing

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Coal producer Peabody Energy (BTU) is increasingly focused on exporting coal to Asia, as demand in America has fallen considerably and could continue to slip. Peabody

Peabody posted 98 cents of EPS, against expectations for $1.29. Revenue also came in below expectations. In the U.S., power companies have been switching to natural gas from coal as the price of gas continues to fall. That’s made Peabody even more reliant on growth in China and India. U.S. utilities burned 5% less coal in 2011, the AP reported, and demand is expected to continue to fall.

Peabody projected sales of 245 to 260 million tons of coal this year, as compared to 250.6 tons in 2011.

Shares fell 4.2% in midday trading.



Original Article Source by Barrons.com