Freeport-McMoRan Copper & Gold Inc.'s (FCX) second-quarter
profit more than doubled as the company posted double-digit sales
growth and gains from higher metal pricing.
The world's second-largest copper producer has posted strong
results in recent quarters on surging prices. Copper prices
recently hit a three-month high as the construction industry shows
signs of recovery. The miner has also benefited from record high
prices of gold, its largest revenue source, as investors stockpile
the precious metal to combat economic uncertainty.
Strong earnings prompted the company in April to declare a
50-cent per-share special dividend on top of its normal quarterly
payments. That came in addition to last year's $1-a-share special
dividend and a two-for-one stock split. Shares have more than
quintupled since December 2008.
Freeport posted a profit of $1.37 billion, or $1.43 a share, up
from $664 million, or 70 cents a share, a year earlier. The most
recent quarter's results include a 6-cent per-share charge on early
extinguishment of debt. The year-ago period included a 5 cent
charge per-share on early extinguishment of debt.
Revenue rose 50% to $5.81 billion.
Analysts polled by Thomson Reuters most recently forecast
earnings of $1.33 a share on revenue of $5.61 billion.
Copper production grew 4% while gold production rose 11%.
Molybdenum output increased 29%.
Realized prices of gold were 22% higher, while copper prices
were up 38%.
Shares were up 0.3% to $56.09 in premarket trading. Through
Wednesday's close, the stock has climbed 69% over the past 12
months.
-By Nathalie Tadena, Dow Jones Newswires; 212-416-3287; nathalie.tadena@dowjones.com