Coal producer Peabody Energy profit up on higher pricing

ST. LOUIS — Peabody Energy Corp’s quarterly profit beat Wall Street estimates as the largest U.S. coal producer realized higher pricing in all regions and domestic volumes increased.

Third-quarter profit rose to $283.5 million, or $1.01 per share, from $237.6 million, or 83 cents per share, in the year-earlier period.

Excluding items, it earned 87 cents per share. Analysts were expecting 85 cents per share, according to Thomson Reuters I/B/E/S.

Revenue rose 9 percent to $2.04 billion, beating estimates of $2.02 billion.

Earlier in the day, ArcelorMittal unexpectedly pulled out of its joint $5 billion bid with Peabody for Australian miner Macarthur Coal , just a day after the buyers said they had secured a majority of shares.

“While we anticipated a positive joint venture with ArcelorMittal, we have always preferred a larger ownership. We partnered with ArcelorMittal to increase the likelihood of achieving control of Macarthur, which has now occurred,” Peabody CEO Gregory Boyce said in a statement on Tuesday.

St Louis-based Peabody’s shares closed at $40.94 on Monday on the New York Stock Exchange. The stock has lost about 36 percent of its value this year, in line with the decline in the Dow Jones coal index.