Freeport's (FCX) CEO 'Very Optimistic' About Business
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Appearing on CNBC's Street Signs today, Freeport-McMoRan's (NYSE: FCX) President and CEO, Richard Adkerson, made several comments related to the company's operations following its Q3 earnings miss, which was reported this morning before the market opened.
When CNBC's Erin Burnett asked the Freeport exec about the company's stock price decline over 2008, Adkerson responded by saying that investors were "reacting to global credit crisis concerns about the economy in the western world and the impact on global economy".
Considering the impacts of the global slowdown on China, which is a massive consumer of copper, Adkerson said that while the country is a key to Freeport's business, it does not drive its business in Asia. Rather, Adkerson pointed out that Freeport does a lot of deals in Japan and Korea, which are also highly dependent on copper.
When asked how far along we are in the broader slowdown process, Adkerson said that business is weak, but noted that Freeport is "well positioned to live with lower prices". Adkerson said that Freeport has aggressively cut its capital spending recently, and believes that its competitors will take similar actions.
Adkerson said that Freeport-McMoRan is "very strong financially" due to "the de-leveraging we did last year" and said that over the long-term this dip in prices "will be supportive of copper" demand. Adkerson continued by admitting that he is "very optimistic about being in this business" and that he "wants to say with it".
Finally, Adkerson didn't take the option of a dividend cut off the table given a dire enough situation, and recognized that the dividend is a cash outflow. The Freeport CEO also pointed out that the company recently suspended its buyback program in order to shore up cash.
Freeport-McMoRan Copper & Gold, Inc. engages in the exploration, mining, and production of mineral properties primarily in Indonesia, North America, South America, and Africa.
When CNBC's Erin Burnett asked the Freeport exec about the company's stock price decline over 2008, Adkerson responded by saying that investors were "reacting to global credit crisis concerns about the economy in the western world and the impact on global economy".
Considering the impacts of the global slowdown on China, which is a massive consumer of copper, Adkerson said that while the country is a key to Freeport's business, it does not drive its business in Asia. Rather, Adkerson pointed out that Freeport does a lot of deals in Japan and Korea, which are also highly dependent on copper.
When asked how far along we are in the broader slowdown process, Adkerson said that business is weak, but noted that Freeport is "well positioned to live with lower prices". Adkerson said that Freeport has aggressively cut its capital spending recently, and believes that its competitors will take similar actions.
Adkerson said that Freeport-McMoRan is "very strong financially" due to "the de-leveraging we did last year" and said that over the long-term this dip in prices "will be supportive of copper" demand. Adkerson continued by admitting that he is "very optimistic about being in this business" and that he "wants to say with it".
Finally, Adkerson didn't take the option of a dividend cut off the table given a dire enough situation, and recognized that the dividend is a cash outflow. The Freeport CEO also pointed out that the company recently suspended its buyback program in order to shore up cash.
Freeport-McMoRan Copper & Gold, Inc. engages in the exploration, mining, and production of mineral properties primarily in Indonesia, North America, South America, and Africa.
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