Freeport-McMoRan Loss Narrows on Fewer Write-Downs
July 26 2016 - 9:40AM
Dow Jones News
Freeport-McMoRan Inc. said its second-quarter loss narrowed as
the mining giant reported fewer write-downs related to its
oil-and-gas business.
However, the Phoenix company's shares fell 6.8% to $11.52
premarket as the per-share loss, excluding certain items, was
slightly wider than analysts feared and revenue missed
expectations.
Freeport, the biggest U.S. mining company by market value, has
been increasing copper production despite weak prices and it also
has been shedding assets to help reduce its debt.
Freeport in May reached a deal to sell its stake in an African
copper operation to a Chinese mining-and-processing firm for $2.65
billion, part of the company's strategy to repay debt. The deal
comes as uneven global economic growth has raised concerns about
demand for commodities, including copper.
Freeport said reported copper production increased 16% in the
latest quarter, while average realized prices declined 20%.
Chief Executive Richard Adkerson said in prepared remarks
Tuesday that Freeport has made significant progress improving its
balance sheet and that since the beginning of the year Freeport has
unveiled more than $4 billion in asset-sale deals. The company,
which also continues to constrain costs and capital spending, is
focusing on executing on its operating plans, he said
Over all, Freeport-McMoRan reported a loss of $479 million, or
38 cents a share, compared with a year-earlier loss of $1.85
billion, or $1.78 a share, a year earlier. The latest period
included net charges of $452 million, or 36 a share, including
write-downs of its oil-and-gas assets, asset-sale gains and other
items. A year-earlier, such charges totaled a net $2 billion, or
$1.92 a share.
Revenue decreased 15% to $3.33 billion.
Analysts polled by Thomson Reuters expected per-share loss of a
penny and revenue of $3.7 billion.
Write to Tess Stynes at tess.stynes@wsj.com
(END) Dow Jones Newswires
July 26, 2016 09:25 ET (13:25 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
Freeport McMoRan (NYSE:FCX)
Historical Stock Chart
From Aug 2024 to Sep 2024
Freeport McMoRan (NYSE:FCX)
Historical Stock Chart
From Sep 2023 to Sep 2024