Patriot Coal 3Q profit declines 26 percent

Patriot Coal 3rd-qtr profit down 26 percent but shares rally as shipments rise sequentially

• On 12:50 pm EDT, Tuesday October 27, 2009

CHARLESTON, W.Va. (AP) -- Patriot Coal Corp. said Tuesday it's the latest U.S. producer to benefit from resurgent demand for metallurgical coal, sending its shares sharply higher.

The St. Louis company said metallurgical coal shipments jumped 50 percent between the second and third quarters to 1.5 million tons. Patriot said customers took more consistent delivery of tons they'd already agreed to buy.

Last week, Peabody Energy, Walter Energy and Consol Energy all reported higher demand for metallurgical coal from steelmakers, particularly in Asia.

During the quarter ended in September, Patriot earned $52.8 million, or 58 cents per share, compared with $71.2 million, or 99 cents per share, in 2008. Revenue increased to $506.2 million from $489.6 million in third quarter of 2008.

Shares of Patriot Coal rallied $2.42, or 22 percent, to $13.61 in midday trading.