Alpha Natural Resources Inc said on Monday that second-quarter profit dropped more than 75 percent because of lower power generation and weakened steel mill production.

Stock in the company, which is in the process of acquiring rival Foundation Coal Inc, fell about 3 percent to $33.15 in electronic trading before the New York Stock Exchange opened.

Net income was $15.4 million, or 22 cents per share compared with $67.1 million, or 94 cents per share, in the second quarter of 2008, the Abingdon, Virginia-based coal miner said.

Total revenue dropped to $386.2 million from $701.8 million, said Alpha, which produces steam coal for power generation and coking coal for steel-making.