ST. LOUIS (AP) â¿¿ Peabody Energy Corp., one of the world's biggest private-sector coal companies, said Wednesday that it has ended production and will permanently close one of its mines in Indiana, citing continued soft market conditions. The St. Louis-based company said it's working with the mine's 230 employees to possibly place them at other Peabody operations. The Vincennes, Ind., mine produced 1.2 million tons of coal in 2011. Peabody said it expects to incur a one-time, non-cash charge of about $75 million after tax for the quarter ending Sept. 30, mainly related to a write down in the value of the mine's assets.Â Like other coal companies, Peabody has struggled this year as utilities switched to cheap natural gas from coal to generate electricity. Natural gas prices are the lowest in years because of huge supplies from booming production. And the mild winter across much of the nation didn't put much of a dent in the gas surplus. In July, Peabody reported a drop in second-quarter profit, cut its 2012 production outlook and forecast lower-than-expected earnings for the third quarter. Peabody on Wednesday, backed its third-quarter adjusted profit prediction of 20 cents to 45 cents per share, saying that the mine's closing won't affect its earnings from continuing operations. Analysts, on average, expect a profit of 36 cents per share, according to FactSet. Analyst estimates typically exclude one-time charges and gains. Peabody shares fell 49 cents, or 2.3percent, to $20.41 just after the market open.
More from Stocks
Boeing 'Regrets Concern' Caused by Test Pilot's 737 MAX Message
Ex-pilot had reportedly said the aircraft's MCAS system was 'running rampant,' but Boeing suggests the exchange was taken out of context.
Tesla Reports Earnings on Wednesday: 3 Key Things to Watch For
The keys to Tesla's earnings report are all drivers of the company's ability to become consistently profitable.
Zuckerberg Set to Defend Libra on Capitol Hill Next Week. Here's What to Expect
While the hearing is focused on Facebook's Libra project, the congressional grilling could also extend to Facebook's acquisitions, antitrust concerns and posture on free speech.