UPDATE 1-Teck Resources posts surprise profit as cost cutting pays off

Thu Feb 11, 2016 5:47am EST
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Feb 11 (Reuters) - Canadian miner Teck Resources Ltd reported a surprise quarterly profit as cost cutting helped offset the impact of lower commodity prices.

Teck, the largest producer of steel-making coal in North America, has said it would lay off about 1,000 employees, or 9 percent of its workforce, and has cut its dividend to reduce costs and shore up its finances.

The company said on Thursday sales costs fell 1.2 percent to C$6.98 billion ($5.00 bln) in 2015, the first fall in seven years.

However, Teck said it expected the cost of products sold to rise slightly to C$45-C$49 per tonne in 2016.

The company reported a net loss attributable to shareholders of C$459 million, or 80 Canadian cents per share, in the three months ended Dec. 31.

Teck earned C$129 million, or 23 Canadian cents per share, a year earlier.

Excluding a non-cash impairment charge of C$536 million, Teck earned 3 Canadian cents per share, compared with analysts' average estimate for a loss of 2 Canadian cents, according to Thomson Reuters I/B/E/S.

Revenue fell 5.4 percent to C$2.14 billion. ($1 = C$1.40)

(Reporting by Nicole Mordant in Vancouver and Anet Josline Pinto in Bengaluru; Editing by Savio D'Souza and Sriraj Kalluvila)