Banner year reported for Phelps Dodge in ’95

With almost all operations turning in stellar performances, Phelps Dodge (NYSE) coasted through the end of the fourth quarter to post yet another record in net income.

In 1995, the company raked in US$746.6 million (or US$10.65 per share), compared with US$362.7 million (US$5.10 per share) in the previous year.

Income for the quarter was US$190 million (US$2.73 per share), compared with US$63.6 million (89 cents per share) for the same period last year.

Copper production in 1995 was a record 1.4 billion lb. — a 24% increase over last year’s record performance. A full year’s production at the Candelaria mine in Chile and the third-quarter startup of the Southside project at the Morenci mine in Arizona were largely responsible for the increase.

“We were also fortunate that this record copper production came in a year of record copper prices,” says Douglas Yearley, president of Phelps Dodge.

Phelps Dodge Industries also reported record income and sales for 1995. The group produces carbon black, wire, cable, wheels and rims.

Capital outlays in 1995 were US$321 million, including US$40 million for properties owned by Azco Mining (AMEX).

The company has entered into contracts with several financial institutions, which will provide a minimum average price of 95 cents per lb. for about 300 million lb. of cathode copper over the course of the first three quarters of the year.

In other news, Phelps Dodge has entered into a joint-venture agreement to acquire a power cable manufacturing plant in China. The company will invest US$20 million to expand operations to produce medium- and high-voltage, insulated, underground cable, which is used to replace overhead powerlines.