The Canadian Press - ONLINE EDITION

Big miner Teck Resources has lower Q2 profit of $80M, revenues down slightly

  • Print

VANCOUVER - Teck Resources Limited (TSX:B) reported Thursday a second-quarter profit of $80 million, down from $143 million a year ago, as the big miner was hit by a lower price for steelmaking coal.

The company said the profit amounted to 14 cents share for the three months ended June 30, compared with 25 cents per share a year ago.

Revenue totalled nearly $2.01 billion for the quarter, down from $2.1 billion in the same quarter of 2013.

Teck reported an adjusted profit for the quarter of $72 million, or 13 cents per share, compared with $197 million, or 34 cents per share year-over-year.

The average analyst estimate had been for a profit of 12 cents per share, according to Thomson Reuters.

The drop in profit came as Teck's realized price for coal fell to US$111 per tonne, compared with US$156 per tonne a year ago.

The company also said its realized price for copper, another key commodity it produces, fell to US$3.08 per pound from $3.24 in the second quarter of 2013. Teck's realized price for zinc increased to 94 cents US per pound, up from 83 cents US a year ago.

The company said the lower price for coal was partially offset by the positive effect of a stronger U.S. dollar, lower corporate overhead spending and changes in pricing adjustments year-over-year.

"We are pleased with the performance of our operations this quarter and with our efforts to reduce our costs and capital spending to ensure we emerge stronger from the current challenging price environment, particularly the substantially lower steelmaking coal price that was prevalent in the second quarter of 2014 compared with last year," Teck president and chief executive Don Lindsay said in a statement.

Teck also said that a cost cutting program launched in 2012 has exceeded its initial goals.

The company said it has identified $180 million of ongoing annual operating cost savings and so far implemented $170 million and realized $150 million on an annualized basis.

The savings are in addition $360 million in savings achieved last year, which are now being embedded its operating procedures.

The company, which had set a target of 600 jobs, said it has cut 535 positions across its operations and it will continue to look for further reductions through attrition where possible.

Fact Check

Fact Check

Have you found an error, or know of something we’ve missed in one of our stories?
Please use the form below and let us know.

* Required
  • Please post the headline of the story or the title of the video with the error.

  • Please post exactly what was wrong with the story.

  • Please indicate your source for the correct information.

  • Yes

    No

  • This will only be used to contact you if we have a question about your submission, it will not be used to identify you or be published.

  • Cancel

Having problems with the form?

Contact Us Directly
  • Print

You can comment on most stories on winnipegfreepress.com. You can also agree or disagree with other comments. All you need to do is be a Winnipeg Free Press print or e-edition subscriber to join the conversation and give your feedback.

You can comment on most stories on winnipegfreepress.com. You can also agree or disagree with other comments. All you need to do is be a Winnipeg Free Press print or e-edition subscriber to join the conversation and give your feedback.

Have Your Say

New to commenting? Check out our Frequently Asked Questions.

Have Your Say

Comments are open to Winnipeg Free Press print or e-edition subscribers only. why?

Have Your Say

Comments are open to Winnipeg Free Press Subscribers only. why?

The Winnipeg Free Press does not necessarily endorse any of the views posted. By submitting your comment, you agree to our Terms and Conditions. These terms were revised effective April 16, 2010.

letters

Make text: Larger | Smaller

LATEST VIDEO

Étienne Gaboury: Manitoba "shining light" of architecture

View more like this

Photo Store Gallery

  • A young goose   reaches for long strands of grass Friday night near McGillvary Blvd-See Bryksa 30 Day goose challenge- Day 19 - May 23, 2012   (JOE BRYKSA / WINNIPEG FREE PRESS)
  • Young goslings are growing up quickly near Cresent Lake in Portage La Prairie, Manitoba- See Bryksa 30 Day goose project- Day 11- May 15, 2012   (JOE BRYKSA / WINNIPEG FREE PRESS)

View More Gallery Photos

Poll

Do you think Judy Wasylycia-Leis will greatly benefit from the endorsement by Winnipeg's firefighters?

View Results

View Related Story

Ads by Google