Teck Resources to cut five percent of its workforce as profit drops

Tue Apr 22, 2014 6:54am EDT
 
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(Reuters) - Diversified Canadian miner Teck Resources Ltd TCKb.TO said it would cut about 600 jobs, or 5 percent of its global workforce, after a sharp fall in earnings and revenue in the first quarter.

The company said it would also reduce other costs by 5 percent to save a total of about C$200 million.

Teck's net profit fell 78.4 percent to C$69 million ($62.62 million), or 12 Canadian cents per share, in the three months to March 31, from C$319 million, or 55 Canadian cents per share, a year earlier, mainly due to weak coal and copper prices.

However, Teck said the outlook for zinc had brightened and it would restart its Pend Oreille zinc mine in Washington state.

Teck said it would continue to delay the reopening of its Quintette coal mine in British Columbia, which was expected to produce 3-4 million metric tons of steelmaking coal annually, until market conditions improve.

North American coal miners are having a tough time due to weak demand and soft prices.

U.S.-based Walter Energy Inc WLT.N said last week it would idle its Canadian coal mines and lay off about 700 workers.

James River Coal Co JRCC.O filed for Chapter 11 bankruptcy protection earlier this month.

Teck several of its mines achieved higher output in the quarter, including the its big Red Dog zinc mine in Alaska, which boosted production of zinc concentrate by 19 percent.   Continued...