Phelps Dodge Corp. reported profits rose nearly 1,100% from the previous year period bolstered by the rising price of Copper and a one-time fee from its failed takeover of fellow miner Inco. By the numbers, Phelps Dodge had profits of $1.32 billion, good for EPS of $6.50, versus earnings of $121.3 (EPS of $0.60) during the prior-year period. Revenue rose 43% to $3.2 billion. Consensus Bloomberg estimates called for EPS of $4.36. Phelps Dodge, the world's third largest copper miner, is poised to be acquired by Freeport-McMoRan Copper & Gold Inc. though it's not clear exactly when that deal will close.
• Sources: Press Release, Bloomberg, Reuters
• Related commentary: Phelps Dodge: SAC Capital's Stake Down, Freeport-McMoRan: Q4 Earnings Miss, Prices and Production Down, Cramer's Take on PD
• Potentially impacted stocks and ETFs: Freeport-McMoRan Copper & Gold (NYSE:FCX), Phelps Dodge (PD). Competitors: Cabot (NYSE:CBT), Southern Copper (PCU), Newmont Mining (NYSE:NEM), Rio Tinto (RTP). ETFs: SPDR Metals and Mining ETF (NYSEARCA:XME), Market Vectors Gold Miners ETF (NYSEARCA:GDX)
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