Peabody Energy reports Q2-2011 Results

Dear PGM Capital blog reader,
On Tuesday, July 19th 2011, Peabody Energy (NYSE: BTU) reported its second quarter 2011 results.


  • EBITDA of $579.5 million, a 32 percent increase from the prior year.
  • Revenues climbed 21 percent to $2.01 billion.
  • Income from continuing operations increased 36 percent to $293.0 million, with diluted earnings per share from continuing operations of$1.05.
  • Adjusted diluted earnings per share from continuing operations rose 61 percent to $1.11.
  • Raising 2011 adjusted diluted EPS target to US$ 4.20 – US$ 4.60
We believe that Peabody Energy as leading producer of Coal will profit, from the increasing demand for Coal from, mainly emerging market countries, which are currently building their infrastructure.
Coal is a Key component in the production of steel and cement and is also being used in the production of electricity.
Here below you’ll find a 2 year chart of Peabody Energy
We own Peabody in our personal  portfolio since February 2009.

Last but not least, please consider before investing your risk tolerance and investment horizon and keep in mind that the price of commodities, like coal, as well as the stock of their producers can be very volatile and that sharp correction might happen in the short time.

Yours sincerely

Eric Panneflek


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