WASHINGTON (MarketWatch) — Shares of Phelps Dodge Corp. lost a little more of their luster Wednesday as investors reacted to the copper-mining giant’s first-quarter financial results.
The Phoenix-based company
reported first-quarter revenue growth of 29% as net income more than doubled.
With prices for copper nearing record levels recently, Phelps Dodge cited pricing for both copper and molybdenum as fueling the growth in its quarterly results and said its business outlook remains upbeat.
“We anticipate continued favorable market conditions for the foreseeable future,” said Chairman and CEO Steven Whisler in a statement.
However, Phelps Dodge’s shares ended the session with a 4.2% loss at $85.54. The stock has retreated from a 52-week high of $109.12 reached on March 4.
Net earnings for the latest quarter were $386.7 million, or $3.83 a share, up from $185.7 million, or $1.90 a share, that Phelps Dodge earned in the same period in 2004.
Operating income reached $549 million, up 74% from the prior year’s $314.8 million, as revenue rose to nearly $2.07 billion from $1.6 billion.
Analysts surveyed by Thomson First Call had been looking for Phelps Dodge to come in with earnings of $3.35 a share and revenue of $2.07 billion, on average.
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