DOW JONES NEWSWIRES
Freeport-McMoRan Copper & Gold Inc.'s (FCX) fourth-quarter
earnings fell 59% as the mining company was hurt by disruptions at
its Indonesia operations.
Shares were up 2.3% at $45.49 in premarket trading as the
results were better than expected. Through Wednesday's close, the
stock is down roughly 23% in the past year.
The world's largest copper producer reported a second straight
quarter affected by a work stoppage last year at the Grasberg
operations. Prior to the strike, Freeport-McMoRan had reported
strong results thanks to rising prices for copper and gold.
For the new year, the company expects sales growth for copper of
2.7% to 3.8 billion pounds and a 1.3% for molybdenum to 80 million
pounds. However gold sales volume is expected to decline 14% to 1.2
million ounces.
Freeport-McMoRan reported a profit of $640 million, or 67 cents
a share, down from $1.55 billion, or $1.63 a share, a year
earlier.
Revenue decreased 26% to $4.16 billion. Analysts polled by
Thomson Reuters most recently projected earnings of 60 cents a
share on revenue of $3.75 billion.
Operating margin fell to 31.2% from 55.3%.
Sales volume fell 13% for copper and 77% for gold amid
disruptions from a labor dispute in Indonesia.
For the new year, Freeport-McMoRan expects capital expenditures
to rise to $4 billion this year, from $2.5 billion reported for
2011.
-By Tess Stynes, Dow Jones Newswires; 212-416-2481;
Tess.Stynes@dowjones.com