Arch Coal's Quarterly Profit Up, Cuts Forecast

Arch Coal Inc said Monday its third-quarter profit more than tripled, driven by strong global demand, but the company lowered its full-year earnings forecast, sending shares down 5.4%.

The company cut its 2008 outlook to a range of $2.30 to $2.55, from an earlier forecast of $2.50 to $2.85 a share.

Shares of the Arch Coal fell $1 to $17.50 in trade before the morning bell.

Net income was $97.8m, or 68¢ per share, compared with $27.3m, or 19¢ per share, a year ago, the St Louis-based company said.

Quarterly revenue rose 28.4% to $769.5m.

Coal prices, especially for export, have risen in recent years. However spot prices have fallen some 40% in the past three months as financial market turmoil has sparked economic uncertainty.

A ton of eastern US coal selling for $139.69 1 July, was going for $121.20 at the end of the quarter 30 eptember, according to the industry newsletter Coal & Energy Price Report. The price was down to $75 last week.

Shares of Arch Coal reached a 52-week high of $77.38 on 19 June, but fell to a low of $19.27 on 22 October.

Reporting by Euan Rocha and Steve James, Reuters.