Coal and copper units lift Teck Resources profit

Thu Oct 27, 2011
* Q3 adj EPS C$1.26 vs C$0.77 a year earlier
* Q3 net EPS C$1.37 vs C$0.54 a year earlier
* Q3 revenue up 40 pct to C$3.38 bln

By Euan Rocha

TORONTO, Oct 27 (Reuters) - Teck Resources' third-quarter net income more than doubled, largely because of strength in its coal and copper businesses, the diversified Canadian miner said on Thursday.

Investments in new equipment, plant upgrades and people have resulted in substantial increases in coal production, while investments at Carmen de Andacollo in Chile and Antamina in Peru have boosted copper production from those two operations, the Vancouver, British Columbia-based company said.

Teck said it continued to advance other late-stage copper development efforts, particularly its Quebrada Blanca and Relincho projects in Chile.

The company said net income rose to C$814 million, or C$1.37 a share, from C$316 million, or 54 Canadian cents a share, a year earlier.

Excluding gains from asset sales, foreign exchange losses and other one-time items, earnings rose to C$1.26 a share from 77 Canadian cents.

Teck said the results reflected higher copper and coal sales volumes and favorable prices for all our major products, especially copper and coal.

Negative factors included a stronger Canadian dollar, higher operating costs and a C$113 million after-tax pricing adjustments arising from the decline of copper prices late in the quarter.

Gross profit rose more than 50 percent to C$362 million in the copper business and increased more than 90 percent to C$954 million in the coal business. Earnings from the zinc business rose 35 percent to C$255 million, the company said in a statement.

Quarterly revenue rose 40 percent to C$3.38 billion.

Teck said late on Wednesday that its board has authorized a 33 percent increase in its semiannual dividend.

The company also said it had reached an agreement to sell 5.6 million tonnes of coal to its customers in the fourth quarter at an approximate average price of US$255 per tonne.

Teck said it continued to discuss further coal sales with its customers.

(sourced Reuters)