(RTTNews) - Diversified mining and metallurgical company Teck Resources Limited (TCK: News ,TCK-A.TO, TCK.B.TO) on Wednesday reported a 44% surge in profit for the third quarter from last year, helped by foreign exchange translation gains on the company's net debt and higher coal sales volumes following the company's purchase of Fording Canadian Coal Trust last year.

Third-Quarter Results

The company's net earnings for the third quarter increased to C$609 million, or C$1.06 per share, from C$424 million, or C$0.95 per share, in the same period last year.

The results for the latest quarter non-cash foreign exchange translation gains of $311 million on the company's net debt, positive after-tax pricing adjustments of $67 million from rising base metal prices, and an after-tax gain of $27 million from the sale of the company's Pogo gold operation. These were partially offset by a $58 million after-tax asset impairment charge related to the company's investment in the Fort Hills oil sands project and the write-off of $26 million of previously capitalized debt financing fees due to the early repayment of the company's bridge loan in the quarter.

Excluding items, adjusted net earnings for the latest quarter declined to C$337 million from C$403 million in the prior-year period. Comparative net earnings were C$270 million, down from C$529 million a year ago.

Net earnings from continuing operations for the quarter was C$583 million, or C$1.02 per share, up from C$427 million, or C$0.95 per share, in the previous-year quarter. On average, three analysts polled by Thomson Reuters expected the company to earn C$0.47 per share for the quarter. Analysts' estimates typically exclude special items.

Revenues for the quarter rose 22.4% to C$2.13 billion from C$1.74 billion in the corresponding period last year.
Operating profit for the quarter increased to C$694 million from C$679 million in the same period last year.

Don Lindsay, President and CEO of Teck Resources said, "Our major operations continue to perform well and produced record revenues of $2.1 billion in the third quarter despite coal and zinc prices that were less than 50% of previous highs. Our total debt has now been reduced by $5 billion since we completed the Fording transaction in October 2008. We expect further reductions of approximately $1.1 billion upon the completion of previously announced asset sales expected later this year and early 2010."

Teck Resources' total debt balance as at September 30, 2009 was C$8.5 billion, down from C$11.2 billion at the end of the preceding second quarter. The company noted that since it acquired the Fording assets in October 2008, total debt was reduced by C$5.0 billion, of which C$3.7 billion was repaid and about C$1.3 billion was from the translation to the Canadian dollar equivalent on account of the stronger Canadian dollar. The company also has committed bank credit facilities aggregating C$1.2 billion, the majority of which mature in 2012 and beyond.

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