NEW YORK (TheStreet) -- Freeport-McMoRan (FCX) - Get Freeport-McMoRan, Inc. Report escaped a strike in Indonesia when workers at the natural resources company's copper mine there cancelled a planned one-month strike due to start next week, according to a union official today, after reaching an agreement with the company's management following two days of talks, Reuters reports.
Three Freeport unions representing almost 11,000 workers had agreed to take strike action from Nov.6 until Dec. 6, demanding changes to the local management following the death of four workers in a Sept. 27 accident.
"Strike cancelled," a union spokesman Juli Parorrongan told Reuters.
Freeport Indonesia, which employs around 24,000 workers, had no immediate comment.
Shares of Freeport-McMoRan are down 0.89% to $27.83
TheStreet Ratings team rates FREEPORT-MCMORAN INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate FREEPORT-MCMORAN INC (FCX) a HOLD. The primary factors that have impacted our rating are mixed some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its attractive valuation levels, good cash flow from operations and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and generally higher debt management risk."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- Net operating cash flow has slightly increased to $1,926.00 million or 2.55% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -40.40%.
- 39.80% is the gross profit margin for FREEPORT-MCMORAN INC which we consider to be strong. Regardless of FCX's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 9.69% trails the industry average.
- FREEPORT-MCMORAN INC's earnings per share declined by 32.9% in the most recent quarter compared to the same quarter a year ago. Earnings per share have declined over the last two years. We anticipate that this should continue in the coming year. During the past fiscal year, FREEPORT-MCMORAN INC reported lower earnings of $2.64 versus $3.18 in the prior year. For the next year, the market is expecting a contraction of 10.0% in earnings ($2.38 versus $2.64).
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Metals & Mining industry. The net income has significantly decreased by 32.8% when compared to the same quarter one year ago, falling from $821.00 million to $552.00 million.
- You can view the full analysis from the report here: FCX Ratings Report