UPDATE 2-Alliance Resource's Q1, higher 2010 view lift shares

Mon Apr 26, 2010 11:13am EDT

* Sees FY10 profit $270.0-$300.0 mln

* Sees FY10 rev $1.50-$1.60 bln, sans transportation rev

* Q1 profit $1.56/lpu vs est $0.98/lpu

* Q1 revenue up 15.6 pct to $380.7 mln, vs est $349.1 mln

* Shares up about 10 percent, touch year high (Adds details, share movement)

April 26 (Reuters) - Alliance Resource Partners LP (ARLP.O) posted estimate-topping quarterly results on strong sales and prices, and forecast higher net income and revenue for 2010, sending the coal producer's shares up about 10 percent to a new year-high.

The company said demand for metallurgical and pulverised coal injection has significantly strengthened in the export markets, but domestic steam coal markets will likely slow improvement in customer demand over the short term.

"Although the U.S. economy is showing signs of improvement ... , we remain guarded in our assessment of the strength and depth of the recovery in general," Chief Executive Joseph Craft said in a statement.

Bigger rivals like Arch Coal Inc (ACI.N) and Peabody Energy Corp (BTU.N) had also echoed similar sentiments of higher international demand for steel-making metallurgical coal.

For 2010, Alliance expects net income to come between $270.0 million to $300.0 million, on revenue of $1.50 billion to $1.60 billion, excluding transportation revenues.

The company had previously forecast net income of $240 million to $270 million, on revenue of $1.47 billion to $1.55 billion, excluding transportation revenue. [ID:nSGE60P0D6]

The company expects 2010 coal production to range between about 29.9 million tons to 30.6 million tons and sees sales volumes coming in the range of 30.8 million tons to 31.5 million tons.

For the first quarter, net income rose to $75.0 million, or $1.56 per limited partner unit, from $72.6 million, or 1.56 cents a unit, in the year ago quarter.

Revenue rose 15.6 percent to $380.7 million, reflecting higher sales volumes, which jumped 14.8 percent to 7.4 million tons.

Analysts on average expected the company to earn 98 cents per unit, on revenue of $349.1 million, according to Thomson Reuters I/B/E/S.

Shares of the Tulsa, Oklahoma-based were up 6 percent at $50.53 in early-morning trade Monday on Nasdaq. They touched a high of $52.45 earlier in the session. (Reporting by Krishna N. Das in Bangalore; Editing by Jarshad Kakkrakandy, Maju Samuel)