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UPDATE 1-Arch Coal quarterly profit down but beats estimate

Published: 30 Oct 2009 04:23:27 PST

* Q3 EPS 16 cents vs Wall Street view 4 cents

* Revenue drops to $615 mln from $769 mln

* Shares rise in premarket trading

NEW YORK, Oct 30 - Arch Coal Inc said on Friday that third-quarter profit fell sharply as it sold less coal at lower average prices, but the results exceeded Wall Street estimates, and second-quarter performance, and its shares rose.

Net earnings were $25.2 million, or 16 cents per share, compared with year-earlier earnings of $97.8 million, or 68 cents per share, the St. Louis-based company said. Revenue fell to $615 million from $769.5 million.

Analysts were expecting 4 cents per share on revenue of $605.1 million, according to Thomson Reuters I/B/E/S.

Arch said it sold 29.1 million tons in the quarter, down from 34.8 million tons in the same quarter of 2008. The average sales price slipped to $20.05 from $20.38 a year earlier.

Arch shares were up 5 percent at $24.35 in electronic trading before the New York Stock Exchange opened.