Miner Teck Resources reports Q3 profit down, plans to cut 500 full-time jobs
Vancouver-based corporation says it wants to improve efficiency following Q3 profit drop
Teck Resources Ltd. says it will cut 500 full-time equivalent jobs as it focuses on trimming $500 million from planned spending through to the end of 2020.
The Vancouver-based miner said Thursday it wants to improve efficiency and productivity after reporting its third-quarter profit attributable to shareholders fell to $369 million compared with a profit of $1.28 billion in the same quarter last year.
"While our financial position remains strong, we have implemented a company-wide cost reduction program with reduced spending, targeting approximately $500 million of reductions through the end of 2020," said Teck CEO Don Lindsay on a conference call.
Global economic uncertainties are having a "significant negative effect" on the company's prices for its products, particularly steelmaking coal, he said.
Teck said its revenue was nearly $3.04 billion for the three months ended Sept. 30, down from nearly $3.21 billion in the year-earlier period.
On an adjusted basis, the company says it earned a profit attributable to shareholders of $403 million or 72 cents per share compared with an adjusted profit of $466 million or 81 cents per share a year ago.
Analysts on average had expected a profit of 66 cents per share for the quarter, according to financial markets data firm Refinitiv.
Teck shares fell by as much as six per cent to $20.70 on the Toronto Stock Exchange.