NEW YORK Teck Resources Ltd.s earnings fell sharply in the second quarter due to lower copper and metallurgical coal prices.
The Vancouver, British Columbia-based company posted net income attributable to shareholders of Canadian $143 million ($139.1 million) for the three months ended June 30, down nearly 60 percent from C$354 million in the same period last year on sales that slid 16 percent to C$2.15 billion ($2.09 billion).
Copper prices were down 9 percent and metallurgical coal prices were 23 percent lower, Teck said, reducing revenue by C$350 million ($340.4 million).
"Prices for our products have continued to weaken, particularly steelmaking coal," Teck president and chief executive officer Don Lindsay said in a statement. "We continue to adapt to changing market conditions and are taking steps to further reduce our capital spending, slowing the start of our Quintette Mine reopening and delaying the development of Quebrada Blanca Phase 2."
Second-quarter copper production was 6 percent lower than a year earlier because of a decrease in production at Quebrada Blanca and slightly lower ore grades and mill throughput at Highland Valley Copper, the company said.
To combat lower prices and revenue, Teck said it will make cost reductions of at least C$300 million ($291.8 million) and plans to cut exploration spending by 15 percent.