Teck Resources down despite better profit in Q4

Shares in Canada's largest diversified miner Teck Resources (TSX:TECK.A | TECK.B)(NYSE:TCK) were down almost 4.9% in New York premarket after reporting weaker than expected earnings for the three months to December and a 10% drop in revenue.

The Vancouver, British Columbia-based company logged a profit of Cdn$700 million or Cdn$1.21 per share for the forth quarter of the year, compared to Cdn$930 million (Cdn$1.61 per share) in the same period of 2016.

While not for much, Teck did miss analysts’ expectations of $1.20 a share, according to Thomson Reuters. As a result, the stock was down 4.86% in the New York Stock Exchange during premarket trade to $1.44.

From a profit attributable to shareholders point of view, however, the miner logged $760 million for the three months ended Dec. 31, or $1.32 per share. That compares to a profit of $697 million or $1.21 per share a year earlier.

Teck, which is also the world’s No.2 exporter of steelmaking coal, said the decline in its adjusted profit was due primarily to lower prices and sales volumes in its steelmaking coal business compared with a year ago.

The company sold 6.4 million tonnes of steelmaking coal, at an average realized price of $170 per tonne, in the fourth quarter, in line with its December forecast for 6.5 million tonnes of output at an average price of $165 to $170 per tonne.

For its full year, the miner said it earned $2.51-billion or $4.34 per share on $12-billion in revenue. That compared with a profit of $1.04-billion or $1.80 per share on $9.3-billion in revenue in 2016.

Teck, which also mines copper, zinc and gold, reported a drop in revenue of 10.9% to $3.21 billion.

More to come…

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