, a producer of copper and chemical products, said its third-quarter earnings more than doubled from the year-ago period, on higher copper prices.
The Phoenix-based company earned $888 million, or $4.36 a share, in the quarter, compared with $366.1 million, or $1.81 a share, a year ago. Third-quarter result includes 54 cents a share in accounting charges related to the company's instruments to protect prices on a portion of its copper production, and special gains of 17 cents a share. Analysts polled by Thomson First Call were expecting earnings of $4.85 a share.
Third-quarter revenue rose 58.7% from a year ago to $3.46 billion as against analysts' expectation of $3.38 billion.
Third-quarter operating income rose 138.1% from a year ago to $1.3 billion and operating margin increased to 38.6% from 25.7%, a year ago.
By segment, third-quarter revenue from Phelps Dodge Mining Company rose 69% from a year ago to $3.1 billion. However, revenue from Phelps Dodge Industries fell 1.3% to $315.3 million.
"We are focused on our future opportunities to create additional shareholder value. The $850 million expansion of our Cerro Verde mine in Peru is nearing completion, and we expect production from the expansion to commence next month,'' the company said. ''We also continue to advance the exciting Tenke Fungurume copper/cobalt project in the Democratic Republic of the Congo. These projects together are expected to add approximately 300,000 tons of additional annual copper production to our account by late 2008.''
The company's stock was trading down $1.93, or 2%, to $97.09 Tuesday.
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