Teck shares up on earnings report

Teck Resources earnings more than doubled in the latest quarter helped by surging coal and copper prices, sending the Canadian mining company's shares up more than six per cent Tuesday.

Teck Resources earnings more than doubled in the latest quarter, helped by surging coal and copper prices, sending the Canadian mining company's shares up more than six per cent Tuesday.
The Vancouver-based coal, zinc and copper producer said late Monday that it earned $461 million, or 78 cents per share, during the first three months of 2011, down from $896 million, or $1.52 per share, during the same period last year.
But adjusted for one-time items, the company earned $450 million, or 76 cents per share, more than double the $198 million, or 34 cents per share, for the same time a year earlier.
Sales were $2.4 billion for the quarter, up from $1.9 billion for the same time a year earlier.
Analysts had expected an average of 76 cents a share, on revenue of $2.2 billion according to Thomson Reuters.
The company's shares were up $3.11, or 6.4 per cent, at $51.88 on the Toronto Stock Exchange in mid-afternoon activity.
The better-than-expected results came despite a number of headwinds for the company.
Unusually difficult winter weather conditions hampered rail and port operations, dropping first-quarter sales to 5.0 million tones, down from the average 5.3 million tonnes of sales in the first quarter of each of the last six years.
Coal production during the quarter was also affected by a two-month strike at its Elkview mine earlier this year that resulted in a loss of some one million tonnes. Production resumed on April 8 after a new labour pact was reached.
As a result, the company produced 75,000 tonnes of copper, 4.4 million tonnes of coal and 238,000 tonnes of zinc in the first quarter of 2011, compared with the 72,000 tonnes of copper, the 5.7 million tonnes of coal, and 231,000 tonnes of zinc for the same quarter a year earlier.
Teck's first-quarter coal sales of five million tonnes topped its most recent forecast range of 4.6 million tonnes to 4.9 million tonnes.

A truck is shown at Teck Resources Coal Mountain operation near Sparwood, B.C. The mining giant reported first-quarter results that beat analysts' expectations. (The Canadian Press)

The company also said it now sees 2011 coal sales to be between 23.5 million tonnes and 24.5 million tones, while annual copper sales are expected to be in the range of 330,000 to 340,000 tonnes. It also said it expects "minimal impact" on sales to Japan following last month's earthquake and tsunami.