Shares of Peabody (BTU) ended Friday's trading session largely unchanged. Shares of the coal producer traded with gains of up to 4% during the morning after commenting on its first quarter outlook.
First Quarter Update
Peabody provided some comments on factors affecting its first quarter and full year 2013 targets. Peabody expects Australian unit costs to increase by approximately 10%, driven by start-up costs at its mines and a higher proportion of higher-cost metallurgical costs. At the same time, the company expects to realize lower metallurgical coal prices compared to the current fourth quarter.
U.S. sales will fall roughly 2 million tons on lower demand and a 5% decline in realized pricing, as a result of the expiration of higher priced contracts.
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