UPDATE 3-Teck warns of soft coal market, shares tumble

Thu Feb 7, 2013 2:19pm EST
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* Adjusted profit C$0.61 vs Street view C$0.48

* Teck sees weak coal market through first half 2013

* Copper production expected to fall in 2013

* Company eyes potential iron ore, copper deals

* Shares down 5.95 percent at C$34.46 on TSX

By Julie Gordon

TORONTO, Feb 7 (Reuters) - Teck Resources Ltd warned on Thursday that global economic uncertainty would weigh on demand for coal through the first half of 2013, sending shares of the diversified Canadian miner down more than 5 percent.

The company plans to produce just 24 million to 25 million tonnes in 2013 - or at least 2 million tonnes shy of capacity - because demand for the steelmaking ingredient remains soft. It also sees a drop in copper output this year.

Teck issued the weak forecast as it reported a sharp drop in fourth-quarter earnings and blamed it in part on sagging coal prices, though production cost cuts and strong copper sales softened the blow. Adjusted earnings beat analyst expectations.   Continued...