Vancouver-based Teck Resources Ltd.’s (TSX: TCK.A and B) profits fell to $312 million in 2012’s second quarter, compared with $663 million in the same quarter last year, on the heels of low commodity prices and global economic uncertainty.
Numbers were down across the board with gross profit before depreciation and amortization at $1 billion in the second quarter compared with $1.4 billion in the same period in 2011.
Similarly, cash flow from operations was $725 million in the second quarter compared with $1.2 billion a year ago.
Don Lindsay, Teck’s president and CEO, said, “We are pleased with our operating results for the second quarter, with record quarterly copper production, a significant increase in coal sales compared with the last quarter and settlement of labour agreements at our Trail and Cardinal River operations.
“Notwithstanding these increases, commodity prices were lower due in part to uncertainty over global economic conditions, resulting in lower profits compared with the second quarter of last year.”
Revenue from operations was $2.6 billion in the second quarter compared with $2.8 billion a year ago. Some details include:
- Revenue from Teck’s copper business declined slightly from a year ago as lower copper prices were partially offset by higher sales volumes;
- Coal revenue decreased by $109 million compared with the second quarter of 2011 as a result of significantly lower coal prices, despite a 21% increase in sales volumes; and
- Revenue from the company’s zinc business declined by $109 million from a year ago on lower metal prices and a 22% decline in sales volumes.
Lindsay noted the company’s balance sheet remains strong, however, with $3.6 billion in cash.
At press time, Teck’s shares were trading down 3.39% or $1.05 on the day to $29.95.
