UPDATE 1-Miner NWR raises coal output target
* Q2 net profit EUR 28.3 mln vs 18.3 mln in Reuters poll
* Sees production at 11.0-11.1 mln tonnes in 2012
* H1 dividend of 0.06 euros/share
PRAGUE, Aug 23 (Reuters) - Miner New World Resources (NWR) raised its 2012 coal production target to meet full order books, after posting estimate-beating second-quarter results.
The owner of the largest Czech hard coal mines said it expected to produce 11.0 to 11.1 million tonnes of coal in 2012, a touch up from a previous range of 10.8-11.0 million.
Chairman Mike Salamon said NWR was seeing some "bright spots" in central Europe, where the coal market has been struggling with falling prices and weaker demand in the last year as the Czech economy sits in recession and other economies slow sharply.
"If you look at automobile manufacturers, our customers' customers, then they are doing reasonably well in terms of Europe," said Salamon.
"I wouldn't say it is fantastic, but it is not complete doom and gloom. There's a great deal of uncertainty."
The company tightened its sales target to 10.3 to 10.4 million tonnes, with the split of higher-margin coking coal unchanged in the mix at 48 percent. Coking coal made up 55 percent of first-half sales due to seasonal effects.
"We assume these volumes we will sell out," Chief Financial Officer Marek Jelinek said on a conference call. "We don't feel the need to limit production despite what is going on in the central European and global economies."
The company had kept its outlook unchanged a month ago when it announced the average agreed price for third-quarter coking coal deliveries was up 2 percent from the second quarter.
Jelinek said there was a higher risk that prices would fall in the fourth quarter rather than rise, although the company has yet to start negotiations.
NWR's attributable net profit fell 66 percent year-on-year to 28.3 million euros in the second quarter, beating the average estimate of 18.3 million in a Reuters poll as the company kept costs in check.
Revenue fell less than expected to 347.5 million from 455.2 million the year before, one of its best quarters on record.
"As the inventory effect was not as strong as expected, it seems that NWR had slightly better cost control than we expected and markedly better than what consensus expected," Ceska Sporitelna said.
"The lower costs and lifted production guidance are slightly positive."
Shares in NWR gained as much as 2.5 percent and were up 2 percent by 0840 GMT, outperforming Prague's 0.5 percent rise.
The company said it would pay an interim divided of 0.06 euros per share, beating some analysts' expectations and a touch down from 0.07 euros in the second half last year.
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