Freeport profit declines

Freeport profit declines

NEW ORLEANS (Reuters): Increased production and lower costs of Indonesian operations blunted the impact of lower copper prices on Freeport-McMoRan Copper & Gold Inc.'s third quarter profits, the company said on Tuesday.

Profits declined to US$23.8 million, or 14 cents per share, matching the First Call consensus for the third quarter. This compares with earnings of $36.6 million, or 19 cents per share, in 1997's September quarter.

Cash production costs of the company's Indonesian mining unit, PT Freeport Indonesia Co., dropped to 16 cents per pound of copper in the latest quarter, the company said, forecasting the costs would average 15 cents a pound for all of 1998. For the first nine months of the year, these costs -- which are net of credits for gold and silver sales -- were 17 cents a pound.