Goldcorp Profit Trails Estimates as Output Misses Expectations

Goldcorp Inc. (G), the biggest producer by market value, reported first-quarter profit and revenue that missed analysts’ estimates after output was lower than expected.

Net income fell to $309 million, or 33 cents a share, from $479 million, or 51 cents, a year earlier, the Vancouver-based company said today in a statement. Earnings excluding one-time items were 31 cents, trailing the 38-cent average of 21 estimates compiled by Bloomberg. Sales fell to $1.02 billion from $1.21 billion a year earlier, less than the $1.35 billion average of eight estimates.

Goldcorp, led by Chief Executive Officer Chuck Jeannes, is seeking to curb rising costs to boost profit margins after gold prices slumped 14 percent this year. The company’s average cost to produce and sell gold, after profiting from sales of silver and other metals, was $565 an ounce, compared with $251 an ounce in the first quarter of 2012 and the $529 average of five estimates compiled by Bloomberg.

Goldcorp produced 614,600 ounces of gold in the first quarter, compared with 524,700 a year earlier. Analysts projected 624,600 ounces, the average of five estimates.

Gold, which has risen for 12 consecutive years, fell into a bear market April 12 after dropping more than 20 percent from a record closing price of $1,891.90 an ounce in August 2011. The metal reached a two-year intraday low of $1,321.50 on April 16, a day after plunging the most in three decades.

Gold averaged $1,631.98 in the first quarter, 3.7 percent less than a year earlier and 5.1 percent lower than in the three months ended Dec. 31.

Goldcorp. is Canada’s second-biggest gold miner by sales. It overtook Toronto-based Barrick Gold Corp. last month to become the most valuable company in the industry, despite producing less than half the metal.

(Goldcorp scheduled a conference call to discuss results at 1 p.m. New York time today, accessible in Canada and the U.S. at 1-800-355-4959 and for international callers at +1-416-695-6617.)

To contact the reporter on this story: Liezel Hill in Toronto at lhill30@bloomberg.net

To contact the editor responsible for this story: Simon Casey at scasey4@bloomberg.net

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