On Jan. 29, pan-American copper miner Phelps Dodge (NYSE:PD) released fourth-quarter earnings for the 2006 fiscal year, a period ended Dec. 31.

  • Times are good for the big miners; Phelps Dodge's mainstay metal is copper, which may have peaked last May, but is still about as expensive on the open market as ever, and the secondary molybdenum sales have seen prices rise fivefold in five years. Hence the huge profit increases, as the company gets paid more for doing the same work.
  • This company won't be around much longer, though. Freeport McMoRan Copper & Gold (NYSE:FCX) is buying it up for $26 billion in cash and stock.
  • The post-merger company will be among the largest copper producers in the world, which is important when negotiating contracts and securing new equipment and property assets.

(Figures in millions, except per-share data)

Income Statement Highlights

Q4 2006

Q4 2005

Change

Sales

$3,235.3

$2,255.6

43.4%

Net Profit

$1,324.3

$121.3

991.8%

EPS

$6.50

$0.60

983.3%

Diluted Shares

203.7

203.2

0.2%


Get back to basics with a look at the income statement.

Margin Checkup

Q4 2006

Q4 2005

Change*

Gross Margin

49.4%

33.0%

16.5

Operating Margin

41.9%

22.3%

19.6

Net Margin

40.9%

5.4%

35.6
*Expressed in percentage points.

Margins are the earnings engine. See how they work.

Management Effectiveness

Q4 2006

Q4 2005

Change*

Return on Assets

37.7%

4.7%

33.0

Return on Equity

74.7%

8.5%

66.3
*Expressed in percentage points.

See how management puts its financial tools to work.

Balance Sheet Highlights

Assets

Q4 2006

Q4 2005

Change

Cash + ST Invest.

$4,947.4

$1,916.7

158.1%

Accounts Rec.

$1,264.8

$1,028.0

23.0%

Inventory

$356.0

$329.5

8.0%


Liabilities

Q4 2006

Q4 2005

Change

Accounts Payable

$2,705.8

$1,445.7

87.2%

Long-Term Debt

$770.1

$677.7

13.6%


Learn the ways of the balance sheet.

2006 Cash Flow Highlights

FY 2006

FY 2005

Change

Cash From Operations

$5,079.2

$1,769.7

187.0%

Capital Expenditures

$1,220.4

$685.4

78.1%

Free Cash Flow

$3,858.8

$1,084.3

255.9%


Find out why Fools always follow the money.

Related Companies:

  • Southern Copper (NYSE:PCU)
  • Mitsui (NASDAQ:MITSY)
  • BHP Billiton (NYSE:BHP)
  • Bayer AG (NYSE:BAY)
  • Anglo American (NASDAQ:AAUK)

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Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean.

At the time of publication, Anders Bylund had no position in any company mentioned. Fool rules are here.