Shares of Peabody Energy slumped after the biggest US coal miner warned that first-quarter sales will be lower than expected due to production issues at mines in Australia and weak demand in the US.
The company expects to report revenue of $980-million for the quarter, according to a statement Thursday. Analysts had been expecting revenue of $1.03-billion for the current period. The shares fell 6.4% before the start of regular trading in New York.
Peabody said warm winter weather in the US crimped demand for coal from utilities, while production issues at some mines in Australia reduced output. It also reported lower prices for some metallurgical coal.
“Our first quarter included some unforeseen production challenges that are now behind us,” Peabody CEO Jim Grech said in the statement.