Coal-mine operator Alpha Natural Resources (ANR: sentiment, chart, options) reported third-quarter net income this morning of $69.9 million, or 97 cents per share, significantly higher than its year-ago profit of $9 million, or 14 cents per share. Earnings from continuing operations totaled 90 cents per share, while revenue jumped 41% to $623 million. The results include $34.4 million in investment write-downs.

Unfortunately, the quarterly report fell short of analysts' expectations. The Street was looking for a profit of 99 cents per share on revenue of $693 million.

In a company release, Chairman and CEO Michael Quillen noted that "International demand for metallurgical coal was impressive in the third quarter," and added, "We produced healthy cash flows that put Alpha in one of the most favorable liquidity positions in the industry, with more than $600 million of cash as of the end of last week."

On the other hand, President Kevin Crutchfield warned, "Apprehension about an economic slowdown has clouded the market outlook considerably over the last 90 days." He told investors that "the key for us next year will be our international contracts for the 2009 - 2010 time frame, and it's still too early to tell how that will fall into place."

ANR shares are poised to open mildly higher than yesterday's close at $29.63. The company's acquisition by Cliffs Natural Resources (CLF) is still pending, but is slated to be complete by the end of the year.