July 27, 2010 / 11:46 PM / in 8 years

UPDATE 1-Teck quarterly operating profit climbs

* Q2 Operating profit C$741 mln Vs C$636 mln a yr-ago

* Q2 Net EPS C$0.44 Vs C$1.17 a yr-ago

* Qtrly revenue up 24 pct to C$2.11 bln (All figures in U.S. dollars, unless noted)

TORONTO, July 27 (Reuters) - Teck Resources TCKb.TO said on Tuesday its second-quarter operating profit rose 17 percent, driven primarily by stronger pricing for copper, coal and zinc.

The Vancouver, British Columbia-based diversified miner said its operating profit in the quarter ended June 30 rose to C$741 million, up from a year-ago profit of C$636 million.

However, its net income fell to C$260 million, or 44 Canadian cents a share, down from C$570 million, or C$1.17 a share, in the year-ago period when results benefited from a large foreign exchange-related gain and assets sales.

Revenue in the quarter rose 23.6 percent to C$2.11 billion, as coal sales volumes rose nearly 30 percent from those of a year earlier.

In April, Teck reinstated its common share dividend, which had been suspended in late 2008 while the company struggled to pay off billions of dollars in acquisition debt. [ID:nN22107208]

Teck borrowed $9.8 billion in term and bridge debt to buy Fording Canadian Coal Trust just ahead of the 2008 resource price crash and global economic slowdown.

Vancouver-based Teck spent most of 2009 and early 2010 paying back the debt — primarily through asset sales, suspending its dividend, and a $4.2 billion bond issue. ($1=$1.04 Canadian) (Reporting by Euan Rocha; Editing by Richard Chang)

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