Arch Coal Q1 profit beats Street; raises outlook

Tue Apr 26, 2011 1:42pm GMT

* Q1 adjusted EPS 36 cents vs Street view 32 cents
* Revenue up 23 percent
* Shares up 0.4 pct

NEW YORK, April 26 (Reuters) - Arch Coal Inc (ACI.N: Quote) posted higher-than-expected first-quarter profit, driven by stronger coal prices, and raised its earnings target for 2011.

Net earnings were $55.6 million, or 34 cents per share, compared with a net loss of $1.8 million, or 1 cent per share, a year earlier.

Excluding one-time items, the St. Louis-based company earned 36 cents per share, 4 cents above the average forecast of analysts polled by Thomson Reuters I/B/E/S.

Revenue rose 23 percent to $873 million.

"Based on our current expectation of global and domestic coal market fundamentals, we have raised our full-year earnings guidance range," said Chairman and Chief Executive Officer Steven Leer.

He also said Arch expects sales of steel-making metallurgical coal to increase as the year progresses. Recent floods in Australia have constrained metallurgical coal exports to China and other Asian economies, pushing up prices.

In early trading on the New York Stock Exchange, Arch shares were up 0.4 percent to $33.97. (Reporting by Steve James; editing by John Wallace, Reuters)