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
"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."
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
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.