BMO Nesbitt Burns Inc. lowered its first quarter earnings target for Teck Cominco Ltd. by 24 per cent, warning that lower-than-expected coal production will hurt the company's profit.
Analyst Tony Robson changed his estimate to 47 cents a share, down from 62 cents, saying that while the company will benefit from stronger copper prices a 25 per cent decline in metalurgical coal production will act as a drag.
"The approximate $12-billion of debt on the balance sheet continues to weigh heavily on the company's valuation and earnings," he wrote in a note to clients. "BMO Research is awaiting further action from Teck regarding asset sales, debt restructuring and a possible equity issue.
Teck reports on Monday. The average estimate, according to Thomson One Analytics, is for 44 cents a share.Report Typo/Error