News: Coal & Allied cuts production/sales forecas

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Rio Tinto Ltd (ASX:RIO) owned Coal & Allied Industries Ltd (ASX:CNA) has reduced its full year coal production and sales forecasts due to wet weather.

Coal & Allied says while it anticipates a strong fourth quarter, it now expects to produce between 25 million and 26 million tonnes for the 2010 calendar year, compared to previous guidance of 27 million tonnes.

However the coal miner says this remains contingent on strong coal chain performance and more favourable weather patterns.

For the September quarter, the company's share of total saleable production fell 15 per cent to 4.228 million tonnes compared to the same quarter in 2009 as a result of extended periods of wet weather.

Coal & Allied's share of coal sales for the third quarter rose 3 per cent to 4.856 million tonnes. Coal & Allied's profit for the half year to June 30, 2010 came to $497.8 million.