Peabody Energy has announced updated 2Q15 financial targets. Adjusted EBITDA and Adjusted EPS are anticipated to be lower than the initial targeted range.
This is reported to be a result of weather-related shipment issues in Southern Powder River Basin and lower seaborne coal pricing, causing an expected timing-related impact of approximately US$40 million in 2Q15.
Peabody has announced a cutback of approximately 250 positions (25% of its corporate and regional staff) at metallurgical and thermal mines in Australia, expecting annual savings of US$40 – US$45 million once put in place this year. The company, projects this will increase productivity, lower costs and improve cash flows, as well as reduce metallurgical coal volumes for sales when markets improve. More details will be provided in the company’s 2Q15 earnings release on 28 July.
The company estimates it will encounter US$20 –US$25 million in 2Q15 in charges related to these actions – these were not previously included in the original financial targets.
Edited from Press Release by Harleigh Hobbs