VANCOUVER - Teck Resources Ltd. (TSX:TCK.A) is reporting first quarter adjusted profit of $105 million, or 18 cents per share, compared with $328 million or 56 cents per share in the same period of 2013.
The Vancouver-based company says profit attributable to shareholders was $69 million (12 cents per share) compared with $319 million (55 cents per share) a year ago.
But because of current low commodity prices, the company says it will reduce its global workforce by 600 positions, or about five per cent, through attrition, hiring freezes and reductions in contractors and employees.
The company says it is also targeting a five per cent reduction in other costs for total savings of about $200 million and will reduce capital spending by about $150 million.
Teck Resources says it will defer equipment purchases, reduce spending on development projects and delay the restart of its Quintette coal mine until market conditions are more favourable.
The company says coal and copper prices in U.S. dollar terms were lower by 19 per cent and 11 per cent, respectively, in the first quarter compared with a year ago. Coal prices are at their lowest level since 2007 and margins are at their lowest level in 10 years.
"We are pleased with our operating performance in the first quarter, with higher production volumes for our major products," said president and CEO Don Lindsay.
"However, prices for these commodities were weak, particularly coal, compared to the first quarter of 2013 resulting in lower profits and cash flows than last year. As a result, we are increasing our efforts to reduce our costs and capital spending."