The Successful Investor Hotline – Friday, February 8, 2013

Article Excerpt

TECK RESOURCES LTD., $33.11, Toronto symbol TCK.B, reported better-than-expected earnings for 2012. However, concerns over lower prices for coal, copper and other commodities caused the stock to fall 10% this week. In 2012, Teck’s earnings fell 38.5%, to $1.5 billion, or $2.60 a share. These figures exclude unusual items, such as gains on asset sales. On that basis, the latest earnings beat the consensus estimate of $2.48 a share. In 2011, Teck earned a record $2.5 billion, or $4.18 a share. Revenue fell 10.2%, to $10.3 billion from $11.5 billion. The company met its production targets for all of its key commodities. However, the slow global economy hurt prices for its coal (down 24.9%), lead (down 13.8%), molybdenum (down 13.3%), silver (down 11.4%), zinc (down 11.1%), and copper (down 9.8%). Teck has signed contracts with most of its major coal customers for the first quarter of 2013. In all, it will sell 6 million tonnes at an average price of $159 U.S. a..