(Reuters) - Teck Resources Inc TCKb.TO, Canada’s largest diversified miner, reported a drop in its second-quarter net profit of nearly 65 percent, largely due to lower coal and metal prices.
Vancouver-based Teck said economic uncertainties in Europe and the United States and less robust growth rates in China, India and other emerging markets hurt both demand and prices for many of its products.
“While we believe that the medium to long-term fundamentals for steelmaking coal, copper and zinc are quite favorable, the recent weakness in these markets may well persist over the near term,” the company said in a statement.
The company said its profit fell to C$268 million ($262.84 million), or 46 Canadian cents per share, from C$756 million, or C$1.28 per share, in the year-earlier period.
Its adjusted profit, which excludes one-time items such as asset sales, fell 53 percent to C$312 million, or 53 Canadian cents per share.
Revenue fell to C$2.56 billion from C$2.80 billion, as coal, copper, zinc and other metal prices fell below year-ago levels.
Analysts on average had expected a profit of 64 Canadian cents per share on revenue of C$2.47 billion, according to Thomson Reuters I/B/E/S.
Copper sales fell 2 percent to C$731 million due to a decline in copper prices, while coal sales dropped 7 percent on lower prices.
The company also said zinc volumes slipped due to seasonal fluctuations at the Red Dog mine in Alaska.
Teck had previously said there would be a one-time after-tax charge of C$34 million booked in the quarter, due to a new collective agreement at its Trail facility in British Columbia.
Teck said to date it has reached agreements with its coal customers to sell 5 million tonnes of coal in the third quarter of 2012 and it expects to conclude additional sales over the course of the quarter.
The average price for its premium coal has been settled at $225 per tonne, with average price for all its coal products at just shy of $200 per tonne.
Teck said its balance sheet remains strong with C$3.6 billion of cash, which will allow the company to advance its longer term growth plans.
$1 = 1.0197 Canadian dollars Reporting by Euan Rocha, Julie Gordon, Adithya Venkatesan and Ankur Banerjee; Editing by Jane Merriman, Supriya Kurane and Gerald E. McCormick