Teck Resources’ profit falls 44% on weak coal prices, but beats estimates Teck Resources (NYSE:TCK) +1.1% premarket after Q2 earnings were hit by
Teck Resources’ profit falls 44% on weak coal prices, but beats estimates
- Teck Resources (NYSE:TCK) +1.1% premarket after Q2 earnings were hit by lower coal prices but still beat expectations by a penny and the company says it exceeded its cost-cutting goals.
- TCK says Q2 coal prices fell to US$111/metric ton from US$156 in the year-ago period, which was the main reason for the lower earnings; the lower coal prices were partially offset by the positive effect of the stronger U.S. dollar and lower costs.
- TCK says it sold 6.8M metric tons of coal during the quarter, vs. 6.3M a year earlier, and expects coal sales at or above 6M tons in Q3.
- Says it has realized C$150M of annualized cost reductions YTD and is targeting another C$50M in cuts; also says it is on target to reduce capital spending by C$150M.
- Says it is in the process of restarting the Pend Oreille zinc mine in Washington state by December to benefit from an improving zinc market, and raises its annual production outlook from the Red Dog mine in Alaska.
