* Q2 operating profit C$636 mln vs C$869 mln a yr-ago
* Q2 adjusted earnings C$177 mln vs C$503 mln a yr-ago
* Q2 net EPS C$1.17 vs C$1.12 (Adds details)
TORONTO/BANGALORE, July 23 (Reuters) - Canadian mining giant Teck Resources TCKb.TO said on Wednesday its second-quarter operating profit fell from a year ago, as strong earnings from its coal business failed to offset pricing and volume declines in its copper and zinc businesses.
Operating profit in the quarter ended June 30 fell to C$636 million ($578 million), down from C$869 million, a year earlier.
Excluding items, earnings in the quarter collapsed to C$177 million, from C$503 million, a year ago.
However, net earnings rose to C$570 million, or C$1.17 per share, from C$497 million or C$1.12 per share in the same period last year.
Net earnings in the second quarter of 2009 included non-cash foreign exchange translation gain of C$413 million, along with other one-time items.
Teck said revenues from coal operations rose about 75 percent to C$954 million.
The company said the increase reflected its 100 percent ownership of Teck Coal, which was known as Elk Valley Coal Partnership. Fording Canadian Coal Trust, which Teck bought last year, had a 60 percent stake in Elk Valley, while Teck had a 40 percent stake.
Teck said copper and zinc revenues fell by a combined C$508 million due to lower metal prices and lower copper sales volumes.
Copper revenues fell 47 percent to C$408 million, while zinc revenue fell 29 percent to C$345 million.
Copper prices in the quarter were 45 percent lower compared with the same period last year, while zinc prices in the quarter were 30 percent lower than in the year-ago quarter, the company said.
Earlier this month, Teck said it would sell a 17.2 percent equity stake for C$1.74 billion to state-owned China Investment Corp in a deal that will help the Canadian miner pay down its debt. [ID:nN03153079]
Teck, a top producer of zinc, copper and metallurgical coal, took on nearly $10 billion in debt last year to buy Fording, which made it a top producer of metallurgical coal, used in making steel. [ID:nN29330206] “We have also made substantial progress with our debt reduction plan,” Teck Chief Executive Don Lindsay said in a statement.
“The $5.81 billion bridge loan related to our acquisition of Fording’s assets has now been paid in full and the $4 billion term loan has been reduced to $2.74 billion,” Lindsay said.
Teck said its capital expenditures for the remainder of 2009, excluding its Fort Hills project, are expected to be about C$280 million.
The company’s shares price has more than tripled year-to-date, as it has clawed its way back from the brink of financial disaster through asset sales, a major bond issue and the sale of the equity stake.
Teck’s shares closed at C$24.75 Wednesday on the Toronto Stock Exchange.
($1=1.100 Canadian Dollar)
Reporting by Euan Rocha in Toronto and Ajay Kamalakaran in Bangalore; Editing by Lincoln Feast and Valerie Lee