Teck Profit Plunges 21%
CBJ – Teck Resources reported a 21% decline in quarterly profit and has cut its 2015 coal production forecast to 25-26 million tonnes from 26.5-27.5 million tonnes due to falling demand from China.
Teck has also cut its third-quarter sales forecast to 6 million tonnes from 6-6.5 million tonnes.
The company said it would reduce production further in the fourth quarter, if market conditions do not improve.
Average realized prices for coal fell 14 per cent to $95 per tonne in the second quarter ended June 30, while average realized prices for copper fell 11 per cent to $2.74 per pound.
Net profit attributable to shareholders fell to $63-million, or 11 cents per share, for the quarter, from $80-million, or 14 cents per share, a year earlier.
The Toronto-based mining company is the largest producer of steel-making coal in North America.