UPDATE 1-Massey profit tops estimates, shares rise

* Q2 earnings $0.24/shr vs Street view $0.18/shr

* Revenue drops 15.6 pct to $697.6 mln vs $691.8 mln view

* Shares rise 5.5 percent in extended trade

LOS ANGELES, July 28 (Reuters) - Coal miner Massey Energy MEE.N on Tuesday reported a second-quarter profit that topped Wall Street estimates as cost-cuts helped offset a more than 15 percent drop in revenue due to weak coal demand.

The company's shares rose 5.5 percent in extended trade.

Net income was $20.2 million, or 24 cents per share, compared with a net loss of $93.3 million, or $1.16 per share, a year earlier.

Revenue slumped 15.6 percent to $697.6 million from $826.8 million, the Richmond, Virginia-based company said.

Analysts had expected earnings of 18 cents per share on revenue of about $691.8 million, according to Reuters Estimates.

In May, five senior Massey executives, including Chairman and Chief Executive Officer Don Blankenship said they were taking a 10 percent cut in monthly salary as part of a cost-cutting initiative.

Also, all Massey's non-employee directors voluntarily agreed to reduce the cash component of their annual base retainer by 10 percent.

To cut costs, Richmond, Virginia-based Massey also idled higher cost mines, limited overtime and renegotiated supply contracts during the quarter. It has also cut 700 jobs since the beginning of the year.

"We have had to make tough decisions to control costs and adapt our operating plans as coal demand remains weak but our operations have performed well," Blankenship said in a statement.

Massey shares rose to $24 after closing at $22.74 in extended trade on the New York Stock Exchange. (Reporting by Nichola Groom; Editing Bernard Orr)