Teck swings to $149-million Q2 loss

Teck Resources Ltd. is reporting a second-quarter loss attributable to shareholders of $149 million on a big drop in revenues due to weaker demand and resource prices during the COVID-19 pandemic.

The Vancouver-based miner's loss in the three months ended June 30 amounted to 28 cents per share, compared with a 41 cents per share or $231-million profit a year earlier.

Excluding one-time items, its adjusted profit fell to $89 million or 17 cents per share, down from $498 million or 88 cents per share in the prior year quarter.

Revenues decreased to $1.72 billion from $3.1 billion in the second quarter of 2019.

Teck was expected to report a three cents per share loss and 10 cents per share adjusted loss on $1.7 billion of revenues, according to financial markets data firm Refinitiv.

The company says it has cut about $250 million in operating costs and $430 million in capital costs to date from expected spending contemplated at the end of last June.

"We took steps during the quarter to further strengthen our financial position, reduce costs and position Teck to significantly improve margins towards the end of 2020 and early 2021 as we complete major capital projects," stated president and CEO Don Lindsay.