Sydney - Wednesday - July 26: (RWE Australian Business News) -...

Sydney - Wednesday - July 26: (RWE Australian Business News) -
Centennial Coal Company Ltd (ASX code: CEY) today warned that net
earnings for the full year were now anticipated to be between $16 and
$17.5 million.
Following a slightly longer relocation of the Newstan longwall
than originally anticipated and slower progress through a localised zone
of poor roof conditions at Tahmoor during June, the company's downgraded
profit guidance of $20 to $26 million has been further affected.
At the time of the first-half result announcement on February
20, Centennial had expected the full-year result to be in line with that
of the 2005 year, which was a net profit of $35.88 million.
However, with improving performances from the group's major
mines and the first half of 2007 scheduled to have only two longwall
changeovers, one each at Tahmoor and Mandalong, Centennial anticipates a
"good start" to the 2007 year.
As a result, Centennial anticipates maintaining the final
dividend of 7c a share (unfranked).

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ROM coal production under Centennial management totalled 5.2
million tonnes for the June quarter and 17.7 million tonnes on a
full-year basis, down 6% and up 6% respectively on the prior periods.
Centennial's equity share of ROM coal production totalled 4.4
million tonnes for the quarter and 15.6 million tonnes on a full-year
basis, down 12% and up 5%.
The company's equity share of coal sales totalled 4.3 million
tonnes for the quarter and 15.2 million tonnes on a full-year basis,
down 5% and up 1%.
Production and sales were primarily affected by the previously
announced operational issues encountered at Newstan, which has had a 2
million tonne impact on the group's 2006 year production and financial
results.
The Newstan longwall changeover and the installation of new
equipment was successfully completed, with production ramp-up under way.
This follows the decision to relocate the Newstan longwall
earlier than expected due to continuing equipment reliability problems.
With the exception of Newstan, the group's longwall operations
all made significant contributions to profitability and continue to
demonstrate growth potential with several recent production and
development records achieved.
Clarence and Charbon returned record years, boosted by strong
export revenues, with another strong year expected after recent export
thermal contract price settlements at similar levels to last year.