VANCOUVER – Teck Resources has released its first quarter financial results that show profit shrunk to $328 million, compared with $544 million in Q1 2012, despite record coal sales of 6.6 million tonnes.
Don Lindsay, president and CEO, said in a release, “Sales of steelmaking coal were up 24% over the first quarter of 2012, a new record for first quarter sales, while sales volumes for copper and zinc were similar to last year despite various operational challenges. However, with continuing uncertain global economic conditions, prices for all of our major products were down compared to the first quarter of last year resulting in lower profits and cash flows.”
Quarter-over-quarter gross profit before depreciation and amortization was $994 million compared to $1.2 billion in 2012. Cash flow was also down, $776 million compared with $1.1 billion a year earlier.
Revenues from Teck’s most important commodities – coal, copper and zinc – all fell in Q1 2013, compared to the same period a year earlier. The shrinkage was due primarily to softening prices. Coal revenue was $1.06 billion ($1.198 billion in Q1 2012); copper revenue was $684 million ($753 million); and zinc revenue was $585 million ($595 million). The realized prices were down 28% for coal, 5% for copper and unchanged for zinc.
Additional details are available in the April 23, 2013, news release posted at Teck.com.