From the Financial Post:
Teck Resources Ltd. reported a strong third-quarter profit of $814-million Thursday, but the mining giant also slashed its copper and coal sales guidance for 2011.
Coal sales guidance was lowered to 22.2 to 23 million tonnes (from 23.5 to 24.5 million) because of concerns about the global economic uncertainty that are impacting steel markets. Teck also warned that fourth quarter sales could be weaker than expected if demand continues to weaken.
In the case of copper, guidance was cut to 320,000 tonnes from the prior estimate of 330,000 to 340,000. Teck blamed lower-than-expected production from the Quebrada Blanca mine in Chile, one of its key operations.
The third quarter was otherwise very solid. Adjusted earnings of $742-million (or $1.26 a share) was a penny ahead of consensus analyst estimates, and the Vancouver-based company also reported record revenue of $3.4-billion, up 40% from a year ago.
“We had a very strong third quarter,” chief executive Don Lindsay said in a statement.
“We set new records for each of revenue, gross profit and cash flow and our cash balance has grown to $4.5-billion today.” He added that the company reached a new record in the quarter for total material moved.
Teck also pleased investors by hiking its semi-annual dividend 33% to 40¢ a share.
