Energy
Freeport-McMoRan to Cut Jobs, Continue Asset Sales
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Freeport-McMoRan Inc. (NYSE: FCX) reported first-quarter 2016 results before markets opened Tuesday. The copper and gold miner reported an adjusted net loss per share of $0.16 on revenues of $3.53 billion. In the same period a year ago, Freeport-McMoRan reported an adjusted net loss per share of $0.06 on revenues of $4.15 billion. First-quarter results also compare to the consensus estimates for a net loss of $0.18 on revenues of $3.52 billion.
On a GAAP basis Freeport posted a quarterly net loss of $4.18 billion, or $3.35 per share. The loss was attributed primarily to lowered carrying value of oil and gas properties and idle rig costs among other items.
Freeport has also announced a new management structure and said Monday that it is instituting a workforce reduction of approximately 25% in its oil and gas segment. The company expects to record a charge of approximately $40 million in the second quarter associated with workforce reductions and other restructuring costs.
In the first quarter, Freeport agreed to sell a 13% stake in its Morenci mine for $1 billion and to sell an interest in its Timok exploration project for about $263 million. Another sale valued at $100 million was announced earlier this month.
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