June 2007 -- Phelps Dodge Corp. is a producer of copper and molybdenum, as well as molybdenum-based chemicals and continuous-cast copper rod. The company saw its revenues climb to $11.9 billion in 2006, up from $8.3 billion in 2005. Meanwhile, net income was at $3.0 billion in 2006, nearly double the $1.6 in net income the company had in 2005. That makes three years in a row that the company set a record for net income.
"As a result of actions we took during the past few years, we are in excellent condition both operationally and financially," noted J. Steven Whisler, Phelps Dodge's chairman and CEO, in January 2007, when the company reported its 2006 year-end results. "We continue to benefit from strong prices for copper and molybdenum, each of which reflects solid market fundamentals."
"Excellent condition" is something of an understatement, as Phelps Dodge was acquired in March 2007 by Freeport-McMoRan Copper and Gold Inc. (FCX) for $26 billion. FCX explores for, develops, mines and processes ore containing copper, gold and silver in Indonesia, and smelts and refines copper concentrates in Spain and Indonesia. The combined company is said to be the largest publicly traded copper company. Upon completion of the acquisition, Whisler retired after 30 years with Phelps Dodge. James R. Moffett, chairman of FCX, will continue as chairman. Richard Adkerson, CEO of FCX, also serves as CEO of the combined company.
