UPDATE 4-Teck defers capital spending; profit sags

Wed Oct 24, 2012 1:19pm EDT
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* Third quarter profit falls on coal, metal revenues

* Adjusted EPS C$0.60 v Street-view C$0.61

* Cuts capital spending for 2012, 2013 by C$1.5 billion

* Sees volatile coal market through early 2013

* Shares up 2.6 percent to C$31.34 on TSX (Adds analyst's comment)

TORONTO, Oct 24 (Reuters) - Teck Resources Inc said on Wednesday it would defer C$1.5 billion ($1.51 billion) in capital spending planned through 2013 and implement a cost-cutting plan as Canada's largest diversified miner felt the pinch of a global economic slowdown.

Teck's shares were up more than 2 percent at midday, however, as its third-quarter earnings per share were not far off analysts' expectations despite a sharp fall in profit on sagging coal sales and prices.

Morningstar analyst Daniel Rohr applauded Teck's efforts to cut costs and defer spending, noting that profits will remain under pressure through the fourth quarter as lower metallurgical coal prices weigh.

"It's probably wise, despite a pretty strong balance sheet, that the company's going to be undertaking some counter-measures to conserve cash," he said.   Continued...