Freeport-McMoRan Inc. Misses as Indonesian Copper Exports Remain Delayed

Freeport-McMoRan (NYSE: FCX  ) announced second-quarter results before the market opened this morning. The global resources company reported revenue of $5.52 billion and net income of $482 million, or $0.46 per share. While revenue beat estimates by $280 million, net income missed estimates by $0.03 per share.

One of the reasons net income fell a little short was because Freeport-McMoRan took $130 million, or $0.12 per share, in charges in the quarter. These charges were due to environmental obligations and related litigation charges, deferred taxes and mark-to-market losses on oil and gas derivative contracts.

In addition to that, copper sales also came in a bit lower than estimated at 968 million pounds. Freeport-McMoRan previously estimated that it would sell 1.1 billion pounds of copper in the quarter as it expected to resume exports in May from PT-FI, which is the company's Indonesian affiliate. Those exports did not resume as planned, though the company says it is encouraged by the discussions it is having with the Indonesian government, which should yield a near-term agreement that will enable Freeport-McMoRan to resume exports.

The delay, which caused lower sales volumes in Indonesia, also affected Freeport-McMoRan's copper production costs in the quarter. While average unit net cash costs fell year-over-year to $1.72 per pound in the quarter that was higher than the $1.58 per pound the company had estimated.

Despite delays in Indonesia, Freeport-McMoRan delivered strong operating performance in the second quarter. The company commenced copper production at its newly expanded Morenci operation and achieved important progress in its mining and oil and gas development projects around the world. The company continues to remain focused on pursing opportunities that increase value for shareholders and sees its current development projects delivering future growth in production, cash flow and returns. 

Top dividend stocks for the next decade
The smartest investors know that dividend stocks simply crush their non-dividend paying counterparts over the long term. They also know that a well-constructed dividend portfolio creates wealth steadily, while still allowing you to sleep like a baby. Knowing how valuable such a portfolio might be, our top analysts put together a report on a group of high-yielding stocks that should be in any income investor's portfolio. To see our free report on these stocks, just click here now.


Read/Post Comments (0) | Recommend This Article (3)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 3040383, ~/Articles/ArticleHandler.aspx, 9/21/2014 12:15:24 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Apple's next smart device (warning, it may shock you

Apple recently recruited a secret-development "dream team" to guarantee its newest smart device was kept hidden from the public for as long as possible. But the secret is out. In fact, ABI Research predicts 485 million of this type of device will be sold per year. But one small company makes Apple's gadget possible. And its stock price has nearly unlimited room to run for early-in-the-know investors. To be one of them, and see Apple's newest smart gizmo, just click here!


Advertisement