February 9, 2011 / 4:56 PM / 7 years ago

UPDATE 1-Teck shares tumble as earnings disappoint

* Teck shares down more than 8 percent in Toronto, New York

* Q4 profit surges, but results miss expectations (Adds analyst comment, updates share price move)

TORONTO, Feb 9 (Reuters) - Shares of Teck Resources TCKb.TOTCK.N fell more than 8 percent on Wednesday, after the diversified miner’s quarterly earnings fell short of analyst expectations.

The Vancouver-based company reported a 76 percent increase in profit late on Tuesday, but missed Street forecasts, partly due to slightly lower than expected sales volumes and a higher than expected tax rate. [ID:nN08274685]

The company’s copper output in the quarter was also hurt by operational issues at some of its mines in Canada and Chile.

Shares of Teck were down $5.30 at $58.26 on Wednesday in New York. In Toronto, they were down C$5.35 at C$57.87.

“Although the quarter was just slightly below expectations, there may be concern about the lower copper guidance, the lower coal prices and higher coal cash costs,” Macquarie analyst Duncan McKeen said in a note to clients.

McKeen, who trimmed his price target on Teck shares to C$89 from C$92, however said that the selloff in the shares should be viewed as good a buying opportunity.

“These types of challenges with ramp-ups at mining operations are normal,” said McKeen. “Teck has a very strong operating team and is better equipped than most companies to work through these challenges.”

$1=$0.99 Canadian Reporting by Euan Rocha; editing by Rob Wilson

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