Teck Resources Ltd. (TSE:TCK.B), the second-largest exporter of seaborne coal used in steelmaking, retreated to a one-month low after reporting weaker-than-expected adjusted profit in the fourth quarter and outlining a cautious outlook due to falling prices of coal and copper.
The shares dropped 6.5 percent to C$26.03 at 1:11 p.m. in Toronto, after hitting C$25.99, the lowest intraday price since Jan.13.
Profit excluding one-time items fell to C$227 million, or 40 Canadian cents a share, in the three months ended Dec. 31, from C$409 million, or 70 Canadian cents a share, in the year- earlier period, the Vancouver-based company said in a statement today. That lagged the 43-cent average of estimates according to Bloomberg.
Sales decreased to C$2.38 billion from C$2.73 billion, above the C$2.31 billion average estimate. Coal revenue dropped 5 percent to C$963 million.
Canada’s largest diversified mining company by market value said prices for all of its key products were down compared to last year, "resulting in lower profits and cash flows than in 2012."
Looking ahead, Teck warned that it continues to experience volatile markets for its products and prices for some of its products have declined significantly.
Coal production in 2014 is forecast to be in the range of 26 to 27 million tonnes, but actual output will depend primarily on customer demand for deliveries of steelmaking coal. Teck said that while demand for coal remains strong, new sources of supply have put downward pressure on coal prices.
The company said its copper production for this year is expected to be in the range of 320,000 to 340,000 tonnes, down from 364,000 tonnes produced last year.
Teck said its zinc-in-concentrate output this year will be in the range of 555,000 to 585,000 tonnes, down from 623,000 tonnes last year.
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