Earnings for the period ended March 31 totaled $US75.1 million, down more than one third from $113.3 million during the same period last year.

The company attributed $25 million of its losses to costs related to the Buchanan mine, which ceased production last July following a series of roof falls and only reopened on March 17 this year.

Consol also cited expenses related to sales contract buy-outs that made about 400,000 tons of product available for resale later at higher prices.

Consol president Brett Harvey said the producer was content with its results.

"This was a good quarter for us when you sort through the noise in the numbers. The impacts from Buchanan were offset in the same quarter by insurance proceeds, including business interruption, and the contract buyouts and options costs are expected to generate higher profits later in the year," he said.

A comparison of production year-on-year shows an drop of 9.3% due to the production loss from Buchanan, but Consol’s Northern Appalachian operations also suffered production issues after delays in the re-start of longwall production following equipment moves because new development wasn't ready.

"If you compare first quarter results with the trailing quarter, you get a different story," Harvey said.

"Production improved in both Northern and Central Appalachia, and margins on coal expanded."

Harvey also highlighted its persistent progress in the area of miner safety with performance by its crews in the first quarter again record-setting.

"Our incidence rate for accidents continues to be at all-time low levels for the company," he said.

"Coal, River Operations, Gas and Land all continue to perform accident free or at very low incidence rates.”

As coal mines move into the upcoming year with stronger market conditions, Consol said it had made a "strategic decision" to only contract part of its production volume for 2009.

"We believe that this tightness in the market will intensify as we get further into the year," said Harvey.

Currently, 6.5Mt of Consol’s planned coal production has been committed for sale, but those tons won't be priced until the second half of 2008.

"We believe there has been a structural shift in the market that will place a higher value on our reserves. We are working with our customers to ensure that they have the supplies they need, while providing a contract mechanism to ensure that our shareholders receive the highest value that the market will allow for our reserves."