Freeport-McMoran Copper & Gold (FCX) Earnings Report

I continue to be cautious on all commodities as all these charts are very overextended and calling for a pullback. Freeport-McMoran Copper & Gold (FCX) (the name is deceiving, this is a 80% copper stock) continues to show us that (a) we are in a global war for resources something I called a "World of Shortages" last August (b) America means less and less each year to many multinationals and (c) media, politicians, and investing pundits don't understand either point a or b. Even our Fed officials do not seem to understand this. We do not live in a vacuum and our 1960s thinking is quite sad to watch. Narcissism and arrogance - I continue to believe are America's Achilles Heel. And don't worry about the multinationals - they will continue to thrive with or without us.

• Freeport-McMoRan Copper & Gold Inc. said Wednesday its first-quarter profit more than doubled as prices for those two metals surged. Phoenix-based Freeport said profit rose to $1.12 billion, or $2.64 per share, for the three-month period that ended March 31, compared with $476 million, or $2.02 per share, in the year-earlier period. Sales were $5.67 billion, up from $2.25 billion.
• Analysts polled by Thomson Financial expected a profit of $2.12 per share on $4.69 billion in sales.
• Freeport acquired Phelps Dodge Corp. last year for $26 billion, becoming the largest publicly traded copper company. In addition to Phelps Dodge mines, Freeport operates the Grasberg mine, one of the world's largest sources of precious metals in Pampua, Indonesia.
• Copper remains in high demand despite the faltering U.S. housing market because China and India continue to press for more resources. A strike by mine workers in Chile, the world's primary copper-producing nation, also is boosting copper prices.
• "The U.S. is a relatively small factor in the marketplace," Adkerson said in the conference call. "The market continues to be very tight globally."
• In the second quarter, Freeport expects its mines to sell 930 million pounds of copper, 225,000 ounces of gold and 18 million pounds of molybdenum. For the year, Freeport expects to sell about 4.2 billion pounds of copper, 1.4 million ounces of gold and 75 million pounds of molybdenum.
• "As we crossed the one-year anniversary of our combination with Phelps Dodge in March, we are established as a financially strong global metals producer with significant current production capacity and reserves, exciting current growth projects and promising opportunities for future growth in major minerals districts around the world," the company said.

This is a former holding for the fund; while I like all commodities, I prefer the price stability (long term contracts) found in iron ore, so I'm weighted in other names.

No position