China stainless steel mogul fights to avoid a second collapse
A debt crisis is threatening the future of one of the world’s top stainless steel producers, Jiangsu Delong Nickel Industry.
America’s largest coal-miner Peabody Energy (NYSE: BTU) has announced Q2 results showing a more than 50% fall in income compared to 2012.
Peabody posted income of $101.4 million and second quarter revenues of $1.73 billion – a 13% decline. The results also show adjusted diluted earnings per share of $0.33.
The company’s Australian operations were hit with price reductions which were partially offset by a 5% volume increase. Revenues per ton are down sharply at these mines – from $107.45 in June 2012 to $86.44 in June 2013.
US revenues per ton are showing 5 to 10% drops compared to 2012.
Cost reduction is a major focus for the coal miner these days and today’s results boasted a 6% decrease in US and Australian costs. In addition to other recent job cuts, Peabody axed 170 jobs today– 5.7% of its Australian workforce. The company expects to cut US costs per ton by 2 to 3 percent this year.
“The strength of Peabody’s global platform and the significant progress of our cost containment actions helped us overcome a number of challenges during the quarter,” said Gregory H. Boyce, the company’s CEO in a statement. “Our progress in reducing capital and moving our operations down the cost curve highlights the actions we are taking to succeed in all market conditions.”
On an optimistic note, the announcement also highlighted increases in global coal demand and expected increases in imports from China and India.
China’s purchases of the black rock rose 13% in June and Indian demand for thermal coal went up 42% in that same month.
Despite the income drop, Peabody was up 5% on the markets on Tuesday, trading at $.17.14.
Image from YouTube.
