FREEPORT-MCMORAN INC Quarterly Report for Q1 Ended Mar 31, 2010

Summary

Freeport-McMoRan Inc. (FCX) reported a significant improvement in its first quarter of 2010 compared to the same period in 2009. This rebound was primarily driven by higher realized prices for copper, gold, and molybdenum, which substantially boosted revenues and operating income. The company's financial performance was strong, with net income attributable to common stockholders rising substantially. This robust performance allowed FCX to enhance its financial position, reduce debt, and reinstate cash dividends to common shareholders. Management views the long-term outlook positively, anticipating continued demand for copper and opportunities for future growth, while maintaining flexibility to adjust its operating strategy based on market conditions.

Key Highlights

• 1Revenue surged to $4.36 billion in Q1 2010, a significant increase from $2.60 billion in Q1 2009, driven by higher commodity prices.
• 2Net income attributable to FCX common stockholders increased dramatically to $897 million ($2.00 per diluted share) from $43 million ($0.11 per diluted share) in the prior year's quarter.
• 3Operating cash flow improved substantially, reaching $1.82 billion in Q1 2010, a significant turnaround from a negative $258 million in Q1 2009.
• 4The company actively managed its debt, purchasing $269 million of its senior notes in Q1 2010 and redeeming $1 billion in Senior Floating Rate Notes in April 2010.
• 5FCX reinstated its common stock dividend in October 2009 and announced an increase in the annual dividend rate in April 2010, signaling management's confidence.
• 6Capital expenditures were $231 million in Q1 2010, down from $519 million in Q1 2009, as the company shifted focus from major project development to managing current operations and debt reduction.

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