UPDATE 2-Miner NWR looks to cut operations after record loss

* Q1 net loss 80.3 mln euros vs 74.6 mln seen in poll

* Lowers 2013 production, sales targets

* Announces short term measures worth 100 mln euros

* Shares rebound off record low

By Jan Korselt and Jason Hovet

PRAGUE, May 16 (Reuters) - Czech coal miner New World Resources (NWR) said it would close or sell some unprofitable operations and cut jobs after posting a second straight record quarterly loss, boosting its shares from a record low.

The owner of the country's biggest hard coal mines posted a first-quarter net loss of 80.3 million euros ($103 million) and unveiled measures worth 100 million euros to try to restore profits in the face of weak demand from steel-making customers.

The steel industry has been hit hard by a drop in demand in austerity-ravaged Europe and signs of slowing growth in China. The Czech economy's longest recession in two decades deepened in the first quarter of 2013.

NWR, which supplies the central European units of ArcelorMittal and U.S. Steel, said it must slim down to help it return to profitability in 2014.

The company has launched the sale of coke unit OKK. It is also looking at idling or selling some mines to focus on more profitable coking coal and away from lossmaking thermal coal, which accounts for around half of its sales.

"In the spring of 2014, you will see a different (mining company) that is undoubtedly smaller, both in terms of the number of employees and production levels," NWR Chief Financial Officer Marek Jelinek told reporters on a conference call.

Jelinek did not give details of the planned job cuts.

He said NWR did not expect any significant improvement in coal prices in the coming years. "We need to face this reality and ensure NWR returns to a situation where it generates profits and cash flow," he said.

The company's shares rose after the measures were announced, gaining 3.5 percent rise to 42.45 crowns. The stock had fallen 61 percent this year to a record low of 40.20.

Ceska Sporitelna analyst Petr Bartek said that, even if the company's plan succeeds in turning operating cash flow positive, it would still not cover all of its investment and interest costs.

"It certainly improves their outlook for the next year or year and a half - they would face no serious risk with liquidity," he said. "But for a long-term improvement, they will certainly need some improvement in coal prices."

SLIMMING DOWN

NWR, which had cash of 193 million euros and another 100 million in a credit facility at the end of the quarter, said it would cut employee pay by 10 percent, sell down thermal coal inventories and scale back planned investment this year to 100 million euros from a previous estimate of 120-130 million.

Chief Executive Gareth Penny said a decision on the sale of the coke unit would be made by August and the company would decide by the end of the year whether it must sell or close any coal mines.

NWR cut its 2013 production forecast to 9 to 10 million tonnes from 10 to 11 million and reduced its sales target by 1 million tonnes to 8.5 to 9.5 million.

First-quarter revenue tumbled 31 percent to 240 million euros. The net loss was bigger than analysts expected and is the biggest since the company listed its shares in 2008, outstripping a previous record loss in the fourth quarter.

Weak demand in the steel industry is hurting other miners. Heavily indebted Russian group Mechel said in April it would slash capital expenditure this year after reporting a fourth-quarter loss.