By Tess Stynes
Freeport-McMoRan Copper & Gold Inc.'s (FCX) third-quarter
earnings edged down on negative oil-and-gas derivatives impacts,
while weaker copper and gold prices weighed on revenue growth.
Still, shares were up 4.4% at $36.60 in recent premarket trading
as the results beat expectations. Through Monday's close, the stock
is up 2.5% this year.
The latest period included the first full quarter of results
from its recent acquisition of Plains Exploration & Production
Co. and McMoRan Exploration Co.--two oil companies with which it
has close ties.
Freeport-McMoRan has been striving to cut costs and reiterated
that it is aiming to reduce capital spending plans by $1.9 billion
through next year, following the recent acquisition. The
cash-and-stock deal initially had been valued at about $9 billion
with about $11 billion in assumed debt.
The company also is reviewing its portfolio of assets for
opportunities for potential divestitures, joint ventures or other
moves to improve its balance sheet.
Freeport-McMoRan reported a profit of $821 million, 79 cents a
share, down from $824 million, or 86 cents a share, a year earlier.
The latest period included nine cents a share for unrealized losses
on oil- and gas-derivative contracts. Revenue increased 40% to
$6.17 billion.
Analysts polled by Thomson Reuters recently expected per-share
earnings of 62 cents and revenue of $5.69 billion.
Sales volumes for copper, gold and molybdenum all increased,
though copper and gold volumes were lower than expected, amid lower
production in South America. The timing of shipments in Indonesia
also contributed to the shortfall on gold volume.
Write to Tess Stynes at tess.stynes@wsj.com
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