Freeport Mcmoran Copper & Gold (FCX) swung to a net profit for the quarter ended Sep. 30, 2016. The company has made a net profit of $286 million, or $ 0.16 a share in the quarter, against a net loss of $3,790 million, or $3.58 a share in the last year period.
Revenue during the quarter grew 14.64 percent to $3,877 million from $3,382 million in the previous year period.
Operating income for the quarter was $359 million, compared with an operating loss of $3,964 million in the previous year period.
Richard C. Adkerson, president and chief executive officer, said, "Our actions during 2016 position us to achieve our objectives of restoring our balance sheet strength and focusing our strategy on our industry leading portfolio of high quality, long-lived copper assets. Our announced asset sale transactions totaling $6.6 billion combined with significant free cash flow generation in the coming quarters will enable us to achieve our debt reduction targets. Our global team continues to execute our cost and capital management initiatives during a period of weak copper prices in a manner that protects the long-term values of our large resources. We remain focused on completing our announced transactions, executing our operating plans and building long-term values from our portfolio of low-cost, long-lived reserves and resources for the benefit of our shareholders."
Operating cash flow remains almost stableFreeport Mcmoran Copper & Gold has generated cash of $2,594 million from operating activities during the nine month period, down 0.54 percent or $14 million, when compared with the last year period. The company has spent $894 million cash to meet investing activities during the nine month period as against cash outgo of $4,941 million in the last year period.
The company has spent $748 million cash to carry out financing activities during the nine month period as against cash inflow of $2,207 million in the last year period.
Cash and cash equivalents stood at $1,108 million as on Sep. 30, 2016, up 227.81 percent or $770 million from $338 million on Sep. 30, 2015.
Working capital increases sharply
Freeport Mcmoran Copper & Gold has recorded an increase in the working capital over the last year. It stood at $7,010 million as at Sep. 30, 2016, up 110.64 percent or $3,682 million from $3,328 million on Sep. 30, 2015. Current ratio was at 2.56 as on Sep. 30, 2016, up from 1.69 on Sep. 30, 2015.
Days sales outstanding went down to 36 days for the quarter compared with 57 days for the same period last year.
Days inventory outstanding has decreased to 36 days for the quarter compared with 51 days for the previous year period.
Debt comes downFreeport Mcmoran Copper & Gold has recorded a decline in total debt over the last one year. It stood at $18,982 million as on Sep. 30, 2016, down 8.29 percent or $1,716 million from $20,698 million on Sep. 30, 2015. Total debt was 45.85 percent of total assets as on Sep. 30, 2016, compared with 41.08 percent on Sep. 30, 2015. Debt to equity ratio was at 2.09 as on Sep. 30, 2016, up from 1.36 as on Sep. 30, 2015. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
