American Coal Giant Peabody Plummets on Poor Earnings Outlook
While America's oil industry in the booming Permian Basin has seen a major transformation over the past years, the same cannot be said for other energy sectors. In particular, coal has fallen out of favor both among consumers as well as investors with coal companies reporting declining revenues across the board. The largest coal company in America, Peabody Energy (NYSE: BTU), said that it was lowering its outlook for Q3 in an announcement that sent shares falling by 10%.
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Peabody cited three main reasons why sales and earnings would take a hit in the third quarter. The first of which was that it was suffering a "significant delay" in terms of restarting production at its major Australian mine following an accidental death in June. The company estimates that this delay alone would eliminate $35 million of its Q3 earnings.
Source Fool.com
