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PHELPS DODGE EARNS $0.96 PER SHARE IN 1992 SECOND QUARTER

 PHELPS DODGE EARNS $0.96 PER SHARE IN 1992 SECOND QUARTER
 PHOENIX, Ariz., July 21 /PRNewswire/ -- Phelps Dodge Corporation (NYSE: PD) today reported consolidated net income of $67.4 million ($0.96 per common share) for the second quarter of 1992, and $121.0 million ($1.72 per common share) for the six months ended June 30, 1992. The company reported net income of $55.7 million ($0.80 per common share) and $133.0 million ($1.92 per common share) in the corresponding 1991 periods. Per share amounts reflect average shares outstanding for the respective periods after giving effect to a June 1992, 2-for-1 stock split.
 Douglas C. Yearley, Chairman of the Board, President and Chief Executive Officer, said: "Our earnings in the 1992 second quarter improved over first quarter results as copper prices showed continued strength, copper margins improved and demand for our manufactured products increased. Phelps Dodge Mining Company reported increased production and improved unit costs principally due to the solvent extraction/electrowinning operations at Morenci, Arizona, and Tyrone, New Mexico. This was in spite of a 59-day, scheduled turnaround at the Hidalgo, New Mexico, smelter during the second quarter. Phelps Dodge Industries continued to enjoy good demand for its products in most of its international markets and saw improvement in its U.S. markets. After an investment in working capital of over $60 million to support improved business conditions, the company's cash flow provided by operating activities, the principal measure of our operating performance, remained strong at $149.3 million for the six months ended June 30, 1992."
 Sales were $663.3 million in the 1992 second quarter and $1,253.8 million in the first six months of 1992, compared with $601.6 million and $1,203.4 million in the corresponding 1991 periods. These increases principally resulted from increased sales volumes of copper, wheels and rims, and wire and cable products. The volumes of total copper sales, including copper purchased from others, were higher in both the second quarter and first six months of 1992. Increased purchases of copper for resale were required to satisfy commitments to customers during the Hidalgo smelter turnaround.
 During the 1992 second quarter, Phelps Dodge Mining Company recorded earnings from operations of $84.4 million, compared with $79.9 million in the second quarter of 1991. For the six-month period ended June 30, 1992, Phelps Dodge Mining Company contributed earnings from operations of $161.3 million, compared with $192.9 million in the 1991 six-month period. This decrease resulted from lower average realized copper prices and a lower volume of sales from mine production in the 1992 six-month period. Production costs reflected increased productivity from recent capital programs including solvent extraction/electrowinning projects.
 Phelps Dodge Mining Company reported sales of $361.6 million in the 1992 second quarter, and $663.1 million in the 1992 six-month period. Sales were $321.1 million and $635.1 million in the corresponding 1991 periods. The New York Commodity Exchange spot price per pound of copper cathode averaged $1.02 in the second quarter and $1.01 in the first six months of 1992, compared with $1.03 and $1.07 in the corresponding 1991 periods.
 The Phelps Dodge Mining Company share of mine production from its worldwide operations was 133,100 tons of copper in the second quarter of 1992 and 256,200 tons in the first six months, compared with 137,600 tons and 268,000 tons in the corresponding 1991 periods. Phelps Dodge Mining Company copper sales from mine production were 127,600 tons in the 1992 second quarter and 255,300 tons in the first six months, compared with 139,800 tons and 278,300 tons in the corresponding 1991 periods.
 Phelps Dodge Industries recorded earnings from operations of $27.5 million in the 1992 second quarter and $47.8 million in the first six months of 1992, compared with $15.3 million and $32.1 million in the corresponding 1991 periods. Higher 1992 earnings for the second quarter and first six months reflected improved results in the wheel and rim, wire and cable, and carbon black businesses due to recovery in the United States and continued good business internationally.
 Phelps Dodge Industries reported sales of $301.7 million in the 1992 second quarter and $590.7 million in the 1992 six-month period. Sales were $280.5 million and $568.3 million in the corresponding 1991 periods.
 At June 30, 1992, the company's total debt was $496.5 million, compared with $479.9 million at year-end 1991. The increase in debt resulted from borrowings outside the United States to fund capital programs at international mining projects and wire and cable plants. The company's ratio of debt to total capitalization was 20.1 percent at June 30, 1992, compared with 20.2 percent at December 31, 1991.
 Phelps Dodge Corporation is the world's second largest producer of copper. The company is also one of the world's largest producers of carbon black, the leading North American fabricator of wheels and rims for medium and heavy trucks, a major manufacturer of magnet wire and specialty conductors, and has operations and investments abroad in mines and wire and cable manufacturing facilities. The company's operations are located throughout the United States and in 22 other countries. PHELPS DODGE CORPORATION STATEMENT OF CONSOLIDATED OPERATIONS (Unaudited; in millions except per share data)
 Second Quarter
 1992 1991
 Sales and other operating revenues 663.3 601.6
 Operating costs and expenses
 Cost of products sold 486.0 440.0
 Depreciation, depletion and amortization 37.0 35.1
 Selling and general administrative expense 25.7 24.7
 Exploration and research expense 11.5 13.6
 560.2 513.4
 Operating income 103.1 88.2
 Equity earnings 1.4 ---
 Earnings from operations 104.5 88.2
 Interest expense less amount capitalized (9.1) (9.0)
 Miscellaneous income and expense, net 4.0 7.2
 Income before taxes 99.4 86.4
 Provision for taxes (32.0) (30.7)
 Net income 67.4 55.7
 Earnings per share 0.96 0.80
 Average number of shares outstanding 70.5 69.5


BUSINESS SEGMENTS (Unaudited; in millions)
 Sales and other operating revenues
 Phelps Dodge Mining Company 361.6 321.1
 Phelps Dodge Industries 301.7 280.5
 663.3 601.6
 Earnings from operations
 Phelps Dodge Mining Company 84.4 79.9
 Phelps Dodge Industries 27.5 15.3
 Corporate and other (7.4) (7.0)
 104.5 88.2


PHELPS DODGE CORPORATION STATEMENT OF CONSOLIDATED OPERATIONS (Unaudited; in millions except per share data)
 First Six Months
 1992 1991
 Sales and other operating revenues 1,253.8 1,203.4
 Operating costs and expenses
 Cost of products sold 914.9 850.5
 Depreciation, depletion and amortization 75.1 70.7
 Selling and general administrative expense 50.7 47.8
 Exploration and research expense 21.3 23.9
 1,062.0 992.9
 Operating income 191.8 210.5
 Equity earnings 2.5 0.7
 Earnings from operations 194.3 211.2
 Interest expense less amount capitalized (19.6) (17.5)
 Miscellaneous income and expense, net 5.9 12.5
 Income before taxes 180.6 206.2
 Provision for taxes (59.6) (73.2)
 Net income 121.0 133.0
 Earnings per share 1.72 1.92
 Average number of shares outstanding 70.4 69.3


BUSINESS SEGMENTS (Unaudited; in millions)
 Sales and other operating revenues
 Phelps Dodge Mining Company 663.1 635.1
 Phelps Dodge Industries 590.7 568.3
 1,253.8 1,203.4
 Earnings from operations
 Phelps Dodge Mining Company 161.3 192.9
 Phelps Dodge Industries 47.8 32.1
 Corporate and other (14.8) (13.8)
 194.3 211.2


PHELPS DODGE CORPORATION CONSOLIDATED BALANCE SHEET
(In millions) June 30, Dec. 31,
 1992 1991
 (unaudited)
 Assets
 Cash and short-term investments, at cost 153.4 182.5
 Receivables, net 383.1 317.7
 Inventories 207.2 208.5
 Supplies 95.9 100.6
 Prepaid expenses 13.5 9.2
 Current assets 853.1 818.5
 Investments and long-term receivables 101.6 95.8
 Property, plant and equipment, net 1,968.1 1,894.5
 Other assets and deferred charges 244.4 242.4
 3,167.2 3,051.2
 Liabilities
 Current liabilities 492.0 476.8
 Long-term debt 381.9 382.0
 Deferred income taxes 175.5 157.5
 Other liabilities and deferred credits 142.6 140.4
 1,192.0 1,156.7
 Minority interest in subsidiaries 39.0 35.2
 Common shareholders' equity 1,936.2 1,859.3
 3,167.2 3,051.2


PHELPS DODGE CORPORATION CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited; in millions)
 Six months ended June 30,
 1992 1991
 Operating activities
 Cash flow from operations 212.7 232.9
 Working capital and other adjustments (63.4) (4.8)
 Net cash provided by operating activities 149.3 228.1
 Investing activities
 Capital outlays (142.4) (176.7)
 Other (4.5) (7.0)
 Net cash used in investing activities (146.9) (183.7)
 Financing activities
 Increase in debt 184.7 42.0
 Payment of debt (168.7) (23.0)
 Common dividends (55.1) (51.9)
 Other 7.6 6.6
 Net cash used in financing activities (31.5) (26.3)
 Increase (decrease) in cash and
 short-term investments (29.1) 18.1
 Cash and short-term investments
 at beginning of period 182.5 161.6
 Cash and short-term investments
 at end of period 153.4 179.7
 -0- 7/21/92
 /CONTACT: Contact: Thomas M. Foster of Phelps Dodge, 602-234-8139/
 (PD) CO: Phelps Dodge Corporation ST: Arizona IN: MNG SU: ERN KJ -- LA008 -- 1126 07/21/92 09:01 EDT
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Date:Jul 21, 1992
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