Peabody Energy Set New Company Mark

ST. LOUIS, MO - Peabody Energy reported full-year 2007 EBITDA from continuing operations of $955.9 million, an increase of 6 percent over comparable 2006 EBITDA. 2007 earnings from continuing operations totaled $1.56 per share on income of $421.3 million, compared with $2.13 per share and $574.5 million in 2006.
Income was impacted by $56 million in lower-than-expected tax benefits reflecting the impact of foreign exchange rates on deferred taxes. The company also set a new company mark for annual coal sales of 237.8 million tons and revenues of $4.6 billion.
"Global coal demand and pricing continues to rise for all coal
products, U.S. prices continue to strengthen, and the pull of Eastern U.S.
coal into the export markets is benefiting the Midwest and Colorado basins
and beginning to reach the Powder River Basin," said Peabody Chairman and
Chief Executive Officer Gregory H. Boyce. "In the past 18 months, we have
invested significant capital on productivity and growth projects, made
strategic acquisitions in Australia, spun off non-core operations and
expanded our global trading activities. These actions, combined with our
growing global market leverage, establish the platform for a long period of
sustained growth."
Full-year 2007 revenues from continuing operations grew 11 percent over
the prior year to a record $4.6 billion on 237.8 million tons. Higher
revenues reflect increased volumes in nearly all regions and improved U.S.
prices. Average U.S. revenues per ton grew 16 percent, driven by a 29
percent increase in premium Powder River Basin prices. Australian revenues
reflect lower metallurgical coal prices associated with annual contracts
that began in April 2007, as well as a change in product mix with increased
thermal coal sales compared with the company's previous position of
primarily metallurgical coal.
"With the recent expansion of our Australian operating platform, the
productivity and throughput enhancements in the Powder River Basin and the
increase in our global trading activities, we are well positioned to serve
growing global demand," said President and Chief Commercial Officer Richard
A. Navarre. "We expect to benefit from these investments and strong market
conditions in 2008. And we have significant opportunities in subsequent
years, from our unpriced position in the Powder River Basin and our growing
leverage to high-priced international markets as legacy contracts roll
off."
The company's address is 701 Market St., St. Louis, MO 63101, 314-342-7900, email: [email protected].