UPDATE 1-James River Q3 profit meets estimates, revenue trails
* Q3 EPS meets estimates of $0.36
* Q3 revenue $168.3 million misses est. of $174 mln
* Says softness in domestic thermal coal markets continues
* Sees demand in Europe picking up before U.S.
Nov 3 (Reuters) - James River Coal Co (JRCC.O) posted quarterly earnings in line with expectations, but said the domestic market for steam coal continues to be very soft due to high level of inventories and low demand from electric utilities.
"While we can see a number of items that should improve the overall domestic coal market in the future, it is still very early," Chief Executive Peter Socha said in a statement.
Socha, however, expects the coal market in Europe to improve in the first half of 2010 and the U.S. market to pick-up in late 2010 or early 2011.
In the latest quarter ended Sept. 30, the producer of steam and industrial-grade coal posted a net income of $9.8 million or 36 cents a share, compared with a loss of $21.7 million or 86 cents a share, a year ago.
Revenue for the quarter rose 10 percent to $168.3 million.
Analysts, on average, were looking for earnings of 36 cents a share, before items, on revenue of $174 million, according to Thomson Reuters I/B/E/S.
Shares of the Richmond, Virginia-based company closed at $19.28 Monday on the New York Stock Exchange. (Reporting by Antonita Madonna Devotta in Bangalore; Editing by Aradhana Aravindan)
