VANCOUVER – Teck Resources reported a first quarter adjusted profit of $105 million this year, compared to $328 million in 2013. The downturn occurred in the face of weak base metal and coal prices, compared to a year earlier. Now the move is on to reduce costs and capital spending.
Chief among Teck's strategy is to cut its workforce by 5% or approximately 600 positions. The target will be met through attrition, hiring freezes, and reduction in the number of contractors at both operations and corporate offices. A further 5% reduction in other costs is expected to bring the total savings to $200 million.
Capital spending will shrink by $150 million through deferred equipment purchases and cuts to development projects with the exception of the Fort Hills oil sands project.
Teck began a $380-million cost reduction program in the second half of 2012. So far $366 million in cuts have been identified, and steps take to realize a savings of $345 million.
Complete information about Teck and its varied operations is available at Teck.com.