Phelps Dodge

(PD) - Get Report

lowered its copper price outlook for 2001 and also warned that it would badly miss Wall Street's second-quarter estimates.

Shares of the copper mining company dropped $1.10, or 2.8%, to $37.91 shortly after the open of the

New York Stock Exchange

, but the stock recently rebounded to trade lower by 16 cents at $38.85.

Phelps Dodge now expects to lose $1.28 to $1.38 a share in the second quarter, before nonrecurring items. Analysts are expecting a loss of 27 cents for the period. The company earned 6 cents in the year-ago period.

The company also expects the copper price on the

New York Commodity Exchange

to average 75 cents to 80 cents a pound in 2001, down from its previous forecast of 80 cents to 85 cents a pound. The company also said it expects an average copper price of 75 cents a pound in the second quarter.

"Despite our solid operating performance, copper prices have weakened due to softness in the overall economy, and we anticipate that prices are likely to trade in a narrow range for the remainder of this year," the company said in a press release. "Nonetheless, we remain optimistic that strong market fundamentals will prevail, and we are bullish on prices in 2002 and 2003.''