(Reuters) - Teck Resources Inc TCKb.TO, Canada’s largest diversified miner, reported a 78 percent fall in quarterly profit attributable to shareholders due to lower coal and metal prices, and it cut capital spending target for the year.
Teck, the largest producer of steelmaking coal in North America, also said it expected coal production for the year to be around the lower end of its earlier forecast of 24.5 million to 25.5 million metric tonnes (28.1 million tons).
“Ongoing economic uncertainties in Europe and the United States and less robust growth rates in China, India and other emerging markets have impacted both demand and prices for some of our products”, the company said.
Average realized coal prices fell to $193 per metric tonne in the third quarter from $202 in the second quarter. Prices were down 33 percent from the same period a year earlier, the company said.
Teck, whose main operations are in Canada, the United States, Chile and Peru, said recent weakness in the seaborne steelmaking coal market may continue into the first half of 2013.
The company, which also produces copper, lead, zinc and molybdenum, said it cut its capital spending target for 2012 and 2013 by about C$1.5 billion ($1.51 billion), with C$300 million of new cuts this year and C$1.2 billion in 2013. The capital expenditure estimate for 2012 is now C$1.8 billion.
Teck’s coal production rose about 6 percent to 6.32 million tonnes in the quarter. Copper production increased 29 percent to a record 99,000 tonnes.
Net income fell to C$180 million, or 31 Canadian cents per share, in the third quarter from C$814 million, or C$1.38 per share, in the year-earlier period. Revenue fell 26 percent to C$2.5 billion.
Adjusted profit fell 52 percent to 60 Canadian cents per share while revenue from operations fell 26 percent to C$2.5 billion. Analysts on average had expected a profit of 61 Canadian cents per share on revenue of C$2.50 billion, according to Thomson Reuters I/B/E/S.
The Vancouver-based company, which has a market value of C$17.92 billion, closed at C$30.54 on the Toronto Stock Exchange on Tuesday.
(Reporting by Sandhya Vijayan in Bangalore; Editing by Ted Kerr)
This story corrects capital spending cut to C$1.5 billion from $1.2 billion in paragraph six