The company said it now expects to earn US$11 cents a share for the June quarter instead of the predicted US$25-30c.

Coal production declined in the month of June, with Northern Appalachia output falling from 4.3 million tons in June last year to 3 million tons last month.

Consol president and chief executives Brett Harvey said he expects the company's board to reduce its dividend from to US$14c a share from US$28c.

Capital spending is also expected to be cut by US$110 million for this year.

"Even with these cuts, we have several important projects already underway that need to be completed," Harvey said.

Many mines have already been idled with the Humphrey and Dilworth mines to be permanently closed later this year, part of a previously announced plan to reduce production by 5-6 million tons from Consol's original forecast.

Consol shares closed yesterday at US$19.05, approaching a year low of US$18.20, after reaching a high of US$28.50 last August.