Freeport-McMoRan Inc. (FCX) swung to a net profit for the quarter ended Mar. 31, 2017. The company has made a net profit of $228 million, or $ 0.16 a share in the quarter, against a net loss of $4,173 million, or $3.35 a share in the last year period. On an adjusted basis, net profit for the quarter stood at $220 million, or $0.15 a share compared with a net loss of $196 million, or $0.16 a share in the last year period. Revenue during the quarter grew 3.05 percent to $3,341 million from $3,242 million in the previous year period.
Operating income for the quarter was $580 million, compared with an operating loss of $3,872 million in the previous year period.
Richard C. Adkerson, president and chief executive officer, said, "During the first quarter, we continued to strengthen our financial position despite the production interruptions experienced at our Indonesian operations. Our strong focus on cost and capital discipline combined with improved market conditions for copper are producing solid results. The resumption of concentrate exports in Indonesia and expected continued strong performance from our Americas operations will enable us to generate significant cash flows in the balance of the year to achieve our balance sheet objectives. Our team is focused on reaching a positive near-term resolution to protect our past investments and support our long-term investment plans in Indonesia and in building long-term values in our large portfolio of high-quality copper assets in the Americas."
Operating cash flow improves
Freeport-McMoRan Inc. has generated cash of $792 million from operating activities during the quarter, up 7.03 percent or $52 million, when compared with the last year period. The company has spent $365 million cash to meet investing activities during the quarter as against cash outgo of $980 million in the last year period.
The company has spent $679 million cash to carry out financing activities during the quarter as against cash inflow of $347 million in the last year period.
Cash and cash equivalents stood at $4,001 million as on Mar. 31, 2017, up 1,632.03 percent or $3,770 million from $231 million on Mar. 31, 2016.
Working capital increases sharply
Freeport-McMoRan Inc. has recorded an increase in the working capital over the last year. It stood at $4,925 million as at Mar. 31, 2017, up 75.45 percent or $2,118 million from $2,807 million on Mar. 31, 2016. Current ratio was at 2.02 as on Mar. 31, 2017, up from 1.63 on Mar. 31, 2016.
Days sales outstanding went down to 50 days for the quarter compared with 62 days for the same period last year.
Days inventory outstanding has increased to 65 days for the quarter compared with 43 days for the previous year period.
Debt comes down significantly
Freeport-McMoRan Inc. has recorded a decline in total debt over the last one year. It stood at $15,363 million as on Mar. 31, 2017, down 26.06 percent or $5,414 million from $20,777 million on Mar. 31, 2016. Total debt was 42 percent of total assets as on Mar. 31, 2017, compared with 48.70 percent on Mar. 31, 2016. Debt to equity ratio was at 1.60 as on Mar. 31, 2017, down from 2.61 as on Mar. 31, 2016. 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
