("Freeport-McMoRan 2Q Profit Up 10% On Improved Sales,"
published at 8:23 a.m. EDT, misstated the size of the revenue
increase and incorrectedly used profit numbers including
preferred-dividend payments. A corrected story follows.)
Freeport-McMoRan Copper & Gold Inc.'s (FCX) second-quarter
profit rose 2.5% on lower taxes higher revenue as prices continue
to rise.
Results beat analysts' expectations, and shares rose 4.8%
premarket to $67.43. The stock had fallen 20% this year through
Tuesday..
The mining company's performance has been boosted of late by
higher prices, which prompted the board to double its annual
dividend in April. Freeport has also been reviving mining projects
it shelved during the economic downturn.
As such, Moody's Investors Services in June said it was
reviewing the company for a potential upgrade out of junk
territory, citing benefit the company will have amid a recovery in
copper markets.
Freeport reported a profit of $664 million, or $1.40 a share, up
from $648 million, or $1.38 a share, a year earlier. Revenue
increased 4.9% to $3.86 billion.
Analysts polled by Thomson Reuters most recently estimated
earnings of $1.28 and $3.53 billion in revenue.
Gross margin fell to 40.5% from 43.9% amid higher mining costs.
But income-tax provisions dropped 20% to $433 million.
Gold production fell 17% and copper output fell 13%. Molybdenum
output jumped 31%. Prices increased for all three.
-By Jodi Xu, Dow Jones Newswires; 212-416-3037;
jodi.xu@dowjones.com