Coal is perhaps one of the most visible minerals used in today’s world. The average consumer or manufacturing giant may not actually see it in its black, raw form, but they are likely to experience its power when they flip a light switch. For all the efforts to wean the world off of fossil fuels, the need for coal is still there. Without it, the world stops. At some point in the future, the world’s reliance on coal may diminish somewhat, but until then there is plenty of coal, and profit, to go around.
Peabody Energy Inc., the world’s largest coal mining company, works to maximize potential energy from coal to its highest possible levels. Providing the United States with approximately 10% of its electric energy needs and 2% of the worlds needs, the company operates at every level to convert coal energy into electricity.
In today’s environmentally conscious world, the company works to provide the everyday energy needs of industry and consumers, while minimizing the release of emissions to the environment. To accomplish this task, the company offers reclaimed methane from coal beds and continuing advances in technology. Currently, the company has witnessed an eighty percent drop in several emissions categories since the 1990 baseline was established.
By every account, the company is surpassing financial expectations. First quarter 2008 growth was up 15% and expected EPS for the year was raised from $1.20 to $2.00. Although US operations are contributing significantly to the company’s performance, international sales and demand are leading current and expected growth. International demand from expanding countries is a significant factor for the company, contributing nearly 50% of sales.
Meeting this demand has been a success, as past improvements in equipment efficiencies at Australian operations have made the company a lean producer. Although the world would like to see less use of coal in its manufacturing and consumer use, there appears to be little likelihood that it is going to see a reduction any time soon. Big coal is producing and seeing the results paying off in a solid way.
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