BRITISH COLUMBIA

Teck Resources reports fourth-quarter profit and revenue down from year ago

02/12/2015 07:56 EST | Updated 04/14/2015 05:59 EDT
VANCOUVER - Teck Resources Ltd. (TSX:TCK.B) said Thursday it earned $135 million in its latest quarter, down sharply from a year ago as it was hit by lower prices for its coal and copper.

The miner said the profit amounted to 23 cents per diluted share for the quarter ended Dec. 31 compared with a profit of $243 million or 40 cents per diluted share a year ago.

Revenue totalled $2.26 billion for the quarter, down from $2.38 billion.

"Although 2014 was a challenging year with significantly lower prices for some of our key products, our operations performed well, setting various production records and generating positive cash flows at all sites," Teck chief executive Don Lindsay said in a statement.

"We continued to focus on conserving cash and maintaining a strong financial position."

Teck saw its average realized coal price slip to $123 per tonne compared with $149 per tonne a year ago, while its average realized copper price fell to US$2.98 per pound compared with US$3.26.

The company's realized zinc price improved to US$1.04 per found compared with 89 cents US in the fourth quarter of 2013.

Coal revenue totalled $824 million, down from $963 million a year ago, while copper revenue fell to $656 million from $762 million.

Zinc revenue improved to $775 million from $$649 million, while energy revenue slipped to $1 million compared with $2 million a year ago.

In its outlook, Teck said demand for its products, particularly coal, remains strong, but increased supply from Australian mines has put downward pressure on coal prices.

It said the longer term fundamentals for steelmaking coal, copper and zinc are favourable but the weakness in some of these markets may persist for some time.