UPDATE 2-Coal miner Consol's profit off as output slips

(Adds CEO quotes, export increase, background)

NEW YORK, April 24 (Reuters) - Coal miner Consol Energy Inc (CNX.N: Quote, Profile, Research) posted a lower-than-expected first-quarter profit on Thursday, as higher selling prices were offset in part by lower production resulting from the idling of its Buchanan mine in Virginia following a roof collapse.

But the company said results would improve later this year as it produces more coal and benefits from sky-high prices for steam coal for power generation and coking, or metallurgical, coal used in steelmaking.

"World demand and tight supplies of both steam and metallurgical grades of coal have pushed prices to record high levels," said President and Chief Executive Officer Brett Harvey.

"Financial results in the second half of this year, but more so in 2009 and 2010, are expected to reflect the positive impact that both the spot and long-term pricing environments are having."

A ton of eastern U.S. coal that sold for $44.75 last April is now selling for $85.50. Powder River Basin coal from Montana and Wyoming has risen to $15 per ton from $8 in the last 12 months, according to the industry newsletter Coal & Energy Price Report.

And this month, major Japanese steelmakers accepted a proposal from miner BHP Billiton (BLT.L: Quote, Profile, Research) (BHP.AX: Quote, Profile, Research) to triple the coking coal price for fiscal 2008.

In light of higher prices and demand growth, Consol expects to increase exports by approximately 25 percent this year, Harvey said.

Net earnings were $75.1 million, or 41 cents per share, compared with $113.3 million, or 61 cents per share, a year earlier, the Pittsburgh-based company said. Analysts had expected earnings of 50 cents per share, according to Reuters Estimates.