Teck’s Q3 Profit Down 41 Percent Despite Record Coal Sales

Teck Resources Ltd. (TSX:TCK.A,NYSE:TCK) provided its unaudited results for the third quarter of 2013, commenting that its adjusted profit came in at $252 million, or $0.44 per share, down significantly from its 2012 result of $425 million, or $0.73 per share. Coal sales, however, hit a record 7.6 million tonnes, a 36-percent increase from a year ago.

Other highlights include:

• Gross profit before depreciation and amortization was $919 million in the third quarter compared with $1.1 billion the third quarter of 2012.
• Cash flow from operations, before working capital changes, was $647 million in the third quarter compared with $885 million a year ago.
• Profit attributable to shareholders was $267 million and EBITDA was $815 million in the third quarter.
• Our cash balance was $2.3 billion at September 30, 2013.
• We continue to implement our cost reduction program and to date our existing operations have identified over $330 million of annual ongoing potential cost savings at constant production levels and have implemented $300 million of these initiatives.
• To date we have reached agreements with our coal customers to sell 5.6 million tonnes of coal in the fourth quarter of 2013 at an average price of US$145 per tonne and expect total sales in the fourth quarter, including spot sales, to be at or above 6.3 million tonnes.
• Coal cost of sales before transportation costs declined to $50 per tonne in the third quarter compared with $58 per tonne a year ago.

Click here to read the full Teck Resources Ltd. (TSX:TCK.A,NYSE:TCK) press release.