* 4th-quarter adjusted earnings C$0.40/shr vs estimated
* Total revenue falls 11 pct
* Coal revenue down 5 pct, copper down 15 pct
Feb 13 Canada's largest diversified miner Teck
Resources Ltd reported on Thursday its quarterly
operating profit fell mostly due to lower prices of coal and
The Vancouver-based company said its selling price for coal
declined 11 percent, while that of copper fell 10 percent during
the fourth quarter ended Dec 31.
The company said its operating profit in the period fell to
C$407 million from C$716 million a year earlier.
Excluding gains from asset sales, impairment charges and
other items, the company earned C$227 million ($207 million), or
40 Canadian cents per share, in the quarter. This compared to an
adjusted profit of C$409 million, or 70 Canadian cents per
share, a year earlier.
Analysts on average had expected Teck to earn 44 Canadian
cents per share, according to Thomson Reuters I/B/E/S.
Teck said copper revenue fell 15 percent to C$762 million,
mainly due to weaker prices and lower volumes caused by delayed
Coal revenue fell 5 percent to C$963 million. Most of Teck's
coal production is made up of metallurgical, or steelmaking,
coal, which is typically more profitable than thermal coal used
to generate electricity.
Total revenue fell 11 percent to C$2.38 billion at the
company, which also produces zinc and has energy holdings in
Canada's tar sands.
In recent weeks the company's U.S.-based rivals, Peabody
Energy, Alpha Natural Resources and Arch Coal
have reported lower revenue due to weak coal prices.
Net income in the quarter rose to C$243 million, from C$217
million, a year earlier, when the company's profit was affected
by a charge related to refinancing its high-yield notes.
Teck cautioned that it continues to experience volatile
markets for its products and prices for some of its products
have declined significantly.
While demand for coal remains strong, new sources of supply
have put downward pressure on coal prices, Teck said, adding
that recent weakness in some of these markets may persist for
The company noted however, that recent declines in the value
of the Canadian dollar have improved the profitability of its
Canadian operations so far this year.
The company said its copper production for 2014 is expected
to be in the range of 320,000 to 340,000 tonnes, compared with
364,000 tonnes produced in 2013.
Coal production in 2014 is expected to be in the range of 26
to 27 million tonnes, but actual output will depend primarily on
customer demand for deliveries of steelmaking coal.
Teck said its zinc-in-concentrate production this year will
be in the range of 555,000 to 585,000 tonnes, down from 623,000
tonnes in 2013.
Shares of Teck Resources, which have fallen 18 percent in
the last year, closed at C$27.86 on Wednesday on the Toronto