DOW JONES NEWSWIRES Peabody Energy (BTU) warned its first-quarter earnings will likely come in at the low end of its prior downbeat projection due to storms and flooding in Australia, which have halted port and rail movements. "Australia is the world's largest coal exporting nation, and disruptions such as these point to the tight supply-demand balance that exists for seaborne metallurgical and thermal coal," said Chief Executive Gregory H. Boyce. The coal company said earnings for the current quarter would be at the low end of the range of 50 cents to 75 cents a share it projected in January, a view that was well below Street estimates at the time. Storms in Queensland have stymied port and rail movement, curtailed production at surface mines and restricted underground access, the company said, estimating the impact at around $50 million for the first quarter. Peabody, the largest U.S. coal producer by output, reported earnings rose 5.9% in the fourth quarter, benefiting from U.S. mining revenue. The company recently completed its roughly $5.05 billion acquisition of the Australia-based coal-mining company Macarthur Coal Ltd. (MCC.AU), increasing its exposure to the growing Asian market. Shares were recently up 7 cents at $30.62 but have fallen 11% over the past three months. -By Kristin Jones, Dow Jones Newswires; 212-416-2208; kristin.jones@dowjones.com
