For the period ended September 30, the producer recorded net income of $US274.1 million, up year-on-year from $224.1 million. Revenues rose 9% to $2.04 billion, driven in large part by US volumes as well as higher pricing across all of its regions.

Total third quarter sales were down, coming in at 63.6 million tons versus 64Mt logged during the same period in 2010.

Peabody also outlined its EBITDA position, which was down in the third quarter to $504.4 million from $571.3 million the prior year.

Contributions from US operations increased 10% year-on-year to $322.7 million on higher volumes and pricing, while Australia EBITDA fell to $243.3 million from $323.2 million in the prior year. Peabody said the benefits of higher pricing for both metallurgical and thermal output was offset by about $120 million in impacts from the roof fall and delayed longwall move at the North Goonyella mine.

Impacts included reduced shipments of the mine’s high quality hard coking coal as well as higher costs from lower production and the operation’s roof fall rehabilitation. North Goonyella’s longwall is now in startup mode after being relocated.

“Peabody delivered solid third quarter results and we remain on track for our best year ever,” chairman and chief executive officer Gregory Boyce said.

“The market supply-demand indicators largely remain positive, with Asian and European coal-fueled generation rising, recent Chinese coal imports setting new records, and US coal inventories falling dramatically.

“Peabody is well positioned in the United States with strong committed sales and low-cost production [and] globally, we are growing to serve increasing Asia-Pacific demand by expanding existing mines and completing the acquisition of Macarthur Coal.”

Peabody officials said progress with its projects, both domestic and international, is continuing, including its major Australian mine expansion program. Three of the six projects are expected to add volumes by the end of 2011.

“In the fourth quarter, the company expects to complete the expansion of the Wilpinjong Mine where operations at the upgraded preparation plant have begun,” the company said.

“Peabody also expects to receive final permitting to increase production at the Millennium mine, and start operations in the expanded Wambo open cut.”

Australian capacity targets are 35 to 40Mt by 2014 to 2015, including 12 to 15Mt met and 15 to 17Mt export thermal.

It also reiterated its progress with a newly-expanded joint venture with Winsway Coking Coal Holdings to market coal in China and the Asia-Pacific region, and said talks are advancing with the Xinjiang Province in China regarding reserve allocations to develop a 50Mtpa surface mine with startup planned for 2014 or 2015.

As it finishes out the year, it projected whole-year capex to be $900 to $950 million.

Sales for the year should range between 245 to 255Mt, 27 to 29Mt from Australia and 200 to 205Mt from the US. The remainder will come from trading and brokerage activities.