Peabody Energy Corporation (NYSE:BTU) released its latest quarterly results this morning before opening bell, posting a decline in revenue from $1.98 billion last year to $1.73 billion this year. The company’s adjusted diluted earnings per share was 33 cents per share for the quarter, compared to 75 cents per share in the same quarter a year ago. The company said earnings from continuing operations were 39 cents per share.

Peabody Energy

Analysts were expecting the company to report losses of 4 cents per share on $1.8 billion in revenue. As a result, shares of the company’s stock surged as much as 5 percent in premarket trading.

Peabody Energy’s revenues declined

The company attributed its better than expected quarterly results to cost cutting measures as revenue for the second quarter fell 13 percent. According to this morning’s statement, the company’s aggressive cost cutting measures reduced its U.S. and Australian costs by 6 percent.

Peabody Energy Corporation (NYSE:BTU) said the revenue decline was due to lower realized pricing from its mining operations and also lower results from its trading and brokerage unit.  It said price declines in Australia were partially offset by a 5 percent increase in volume. Australian sales were 8.6 million tons. U.S. revenues were $970.9 million.

Peabody updates capital plans

The coal mining company lowered its 2013 Australian cost targets to the mid-$70 per ton range. U.S. costs per ton are expected to be 2 to 3 percent lower than last year. Peabody Energy Corporation (NYSE:BTU) said its cost cutting measures have mainly included savings from multiple owner-operator conversions in Australia and productivity improvements.

It also slashed jobs and over time and worked across the supply chain to cut the costs of materials and supplies. In addition, the company capitalized on lower Australian dollar exchange rates.

Peabody provides guidance for Q3

For the third quarter of the year, Peabody Energy Corporation (NYSE:BTU) guided for adjusted diluted earnings per share of between losses of 16 cents and earnings of 9 cents. The company’s adjustments reflected expected seasonal increases in U.S. volumes as well as geologic problems in Australia and falling coal prices.

Other full-year targets for this year include total sales of 230 million to 250 million tons, with 180 million to 190 million coming from the U.S. and 33 million to 36 million coming from Australian sales. U.S. revenues per tom are expected to be 5 to 10 percent below last year’s levels. Also full-year depreciation, depletion and amortization levels will be about 10 percent higher than last year.