Canadian diversified miner Teck Resources Ltd reported a 44 per cent drop in quarterly earnings, mainly due to “significantly” lower coal prices.
Teck said coal prices fell to $111 per tonne in the second quarter from $156 per tonne a year earlier. The company said it sold 6.8 million tonnes of coal during the quarter, compared with 6.3 million tonnes a year earlier.
The company expects coal sales to be at, or above, 6.0 million tonnes in the third quarter ending September.
Under pressure from weak metals and mineral prices, Teck said in April it plans to cut about 600 jobs, or 5 per cent of its global workforce.
Other U.S.coal miners have also been struggling with poor metallurgical coal prices and weak sales.
Teck, which also mines zinc and copper, said it is in the process of restarting the Pend Oreille zinc mine in northeastern Washington by December to benefit from an improving zinc market. The company also raised its annual production outlook from the Red Dog mine located in northwest Alaska.
On an adjusted basis, Vancouver-based Teck’s earnings fell to 13 Canadian cents per share from 34 Canadian cents per share.
Net profit attributable to shareholders fell to $80-million, or 14 cents per share, in the quarter ended June 30, from $143-million, or 25 cents per share.
Revenue fell 6.6 per cent to $2.01-billion.
The Vancouver-based company’s stock, which has fallen about 7 per cent this year on the Toronto Stock Exchange, closed at $25.62 on Wednesday.
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