Teck Resources second-quarter profit falls; cuts coal output forecast
(Reuters) - Canadian miner Teck Resources Ltd TCKb.TO TCK.N reported a 21 percent fall in quarterly profit and cut its 2015 coal production forecast due to falling demand from China and increased supply from Australia.
The company, the largest producer of steel-making coal in North America, cut its 2015 coal production forecast to 25-26 million tonnes from 26.5-27.5 million tonnes.
Teck also cut its third-quarter sales forecast to 6 million tonnes from 6-6.5 million tonnes.
The company said it would reduce production further in the fourth quarter, if market conditions do not improve.
Average realized prices for coal fell 14 percent to $95 per tonne in the second quarter ended June 30, while average realized prices for copper fell 11 percent to $2.74 per pound.
Net profit attributable to shareholders fell to C$63 million ($48.6 million), or 11 Canadian cents per share, for the quarter, from C$80 million, or 14 Canadian cents per share, a year earlier.
On an adjusted basis, Teck earned 14 Canadian cents per share, above analysts' average estimate of 11 Canadian cents, according to Thomson Reuters I/B/E/S.
The Vancouver-based miner reported revenue of about C$2 billion, in line with the average analyst estimate.
Up to Wednesday's close of C$10.41, the company's Toronto-listed shares had fallen 34 percent this year, while its U.S.-listed shares dropped 42 percent. Continued...