Peabody Energy is the world’s largest private-sector coal company, fueling approximately 10 percent of all U.S. electricity generation and 2 percent of worldwide electricity. Peabody said global demand for U.S. coal continues to rise. Exports are running 44 percent ahead of 2007 and on pace to reach 85 million tons by this year’s end, with continued increases expected in 2009.

Peabody reported net income of $369 million, or $1.36 cents per share, in the third quarter. That compares with $32.3 million, or 12 cents per share, in the year-earlier period. It now expects income from continuing operations of $3.00 to $3.25 per share, up from $2.50 to $3.00 per share three months ago. Revenue from the company’s U.S. mining operations grew to $930.7 million, up from $805.5 million a year ago. Australian revenue increased to $789 million from $307.6 million a year ago.

“Clearly, this quarter highlights our earnings capacity,” Gregory Boyce, Peabody’s chairman and chief executive, told analysts during a conference call. “Simply put, Peabody is a distinctive company in a distinctive industry that has been designed to navigate well through all economic waters.”

Coal companies have benefited from rising North American coal prices over the past several quarters. Increasing global demand, coupled with supply disruptions have boosted prices. “Supply challenges around the world and lack of capital to respond to market shortages will continue to drive a tight global supply-demand balance for coal,” said Richard Navarre, Peabody’s president and chief commercial officer. “The long-term coal demand profile is very strong and will continue to be led by emerging economies.”

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