* Q3 loss 27.6 mln euros vs 21.1 mln loss fcast
* Raises FY production target as sales rise on quarter
* CFO says Q4 to be better but still in net loss
* Shares drop as much as 2 percent
(Adds CFO comments, analyst, shares)
By Jan Korselt and Jason Hovet
PRAGUE, Nov 18 (Reuters) - New World Resources (NWR), the
largest Czech hard coal miner, made another quarterly net loss
on lower demand from steel producers, but nudged up its 2009
output target as the steel sector begins to recover.
The company made a third-quarter net loss of 27.6 million
euros, against an average loss estimate of 21.1 million euros in
a Reuters poll of analysts, compared with a 70.3 million euro
profit a year ago.
The miner has made three straight quarterly losses this year
despite cost cutting as central Europe's economic output fell
sharply, taking with it demand for steel, the industry that
makes up NWR's main customer base.
Chief Financial Officer Marek Jelinek said recovery was
underway, however, and would be reflected in the fourth quarter,
though it would still make a net loss.
"Regarding the market in general, (and) the demand for coal,
we think that there is a continuing recovery," Jelinek told
Reuters in a brief phone interview. "We think that we should see
similar trends in the fourth quarter."
Shares in NWR, which have nearly tripled in value since
March lows, fell as much as 2 percent on Wednesday before
trading 1 percent down at 173 crowns in Prague by 0921 GMT.
Analysts said the outlook for the coming quarter was
slightly more negative than had been expected.
"Shares should not move so significantly as ... (markets)
will wait for a more precise outlook for next year," said
Komercni Banka analyst Josef Nemy.
Third-quarter revenue fell in line with expectations to
291.3 million euros. On a quarter-on-quarter basis, NWR said,
sales rose after steel sector customers increased production,
though levels remained a third lower than a year ago.
The miner raised its full-year production target to 11
million tonnes from 10.5 million.
NWR said it was negotiating 2010 contracts, whose results
are closely watched by the market. Jelinek said he expected 2010
would show improvement over 2009 in coal demand and prices,
although still below peak 2008 levels.
"We do see an economic recovery in the eurozone; the Czech
economy and neighbouring economies are emerging from a
recession," he said. "Steel production continues to grow ... so
we expect that to be reflected in prices."
NWR's shares have risen 136 percent so far this year,
outperforming the 34 percent gain in the Prague index <>. The
stock has jumped 180 percent from its all-time low hit in March.
(Writing by Jason Hovet; editing by Simon Jessop/Will Waterman)
