Bloomberg News

Teck Profit More Than Doubles on Higher Coal, Copper Sales

October 27, 2011

(Updates with closing share price in fourth paragraph.)

Oct. 27 (Bloomberg) -- Teck Resources Ltd., the world’s second-largest exporter of coal used in steelmaking, said profit more than doubled as it reported record revenue.

Net income surged to C$814 million ($819 million), or C$1.37 a share, from C$316 million, or 54 cents, a year earlier, the Vancouver-based company said today in a statement. Revenue advanced 40 percent to C$3.38 billion, from C$2.41 billion a year earlier, as commodity prices advanced.

Third-quarter results were boosted by a 49 percent increase in coal sales on “significantly” higher prices and sales volumes, while copper revenue gained 43 percent and zinc rose 22 percent, the company said. Coal production increased by 9 percent from a year earlier to 6 million tons.

Teck rose 8.1 percent to C$40.35 in Toronto. Teck has declined 35 percent this year.

Third-quarter earnings per share excluding asset-sale gains and other one-time items were C$1.26, the company said, trailing the C$1.30 average of 12 analysts’ estimates compiled by Bloomberg.

“Adjusted EPS was below our forecasts due to higher than expected costs at the copper operations and lower than expected sales and realized coal price in Canadian dollars,” Greg Barnes, a Toronto-based analyst at TD Securities, said in a note to clients today.

Australia’s BHP Billiton-Mitsubishi Alliance is the world’s largest exporter of metallurgical coal.

--With assistance from Andrew Cosgrove in Princeton, New Jersey. Editors: Steven Frank, Jessica Resnick-Ault.

To contact the reporters on this story: Christopher Donville in Vancouver at cjdonville@bloomberg.net; Sean B. Pasternak in Toronto at spasternak@bloomberg.net.

To contact the editor responsible for this story: Simon Casey at scasey@bloomberg.net.


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