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PHELPS DODGE EARNS $1.70 PER SHARE IN 1992 THIRD QUARTER

 PHELPS DODGE EARNS $1.70 PER SHARE IN 1992 THIRD QUARTER
 PHOENIX, Ariz., October 20 /PRNewswire/ -- Phelps Dodge Corporation (NYSE: PD) today reported consolidated net income of $119.9 million, or $1.70 per common share, for the third quarter of 1992, and $240.9 million, or $3.42 per common share, for the nine months ended September 30, 1992. The company reported net income of $64.7 million, or 93 cents per common share, and $197.7 million, or $2.85 per common share, in the corresponding 1991 periods. Per share amounts reflect average shares outstanding for the respective periods after giving effect to a two-for-one stock split in June 1992.
 Douglas C. Yearley, Chairman of the Board, President and Chief Executive Officer, said: "Our quarterly earnings included $36.4 million, or 52 cents per common share, from the sale to Sumitomo of a 20 percent interest in the La Candelaria copper project in Chile. This gain recovers more than a year's worth of exploration expense, and further demonstrates the favorable effect of our exploration program on shareholder value.
 "Phelps Dodge Mining Company had another favorable quarter, with copper production reaching the highest level in the last seven quarters and continued good production costs. Despite a soft U.S. economy, Phelps Dodge Industries still produced satisfactory results that were higher than those in the 1991 third quarter.
 "Cash flow provided by operating activities, the principal measure of our operating performance, remained healthy during the nine-month period at $288.5 million."
 Sales were $672.1 million in the 1992 third quarter and $1,925.9 million in the first nine months of 1992, compared with $617.6 million and $1,821.0 million in the corresponding 1991 periods. The 1992 third quarter increase principally resulted from higher average copper prices. The increase for the 1992 nine-month period resulted from higher sales volumes of copper including copper purchased for resale, wheels and rims, and wire and cable products.
 During the 1992 third quarter, Phelps Dodge Mining Company recorded earnings from operations of $113.6 million, compared with $87.3 million in the third quarter of 1991. This increase reflects a higher average copper price and lower cost of production in the 1992 third quarter. For the nine-month period ended September 30, 1992, Phelps Dodge Mining Company contributed earnings from operations of $274.9 million, compared with $280.2 million in the 1991 nine-month period. This decrease resulted from lower average prices and volumes of copper sold. Partially offsetting these decreases were slightly lower copper production costs in 1992.
 Phelps Dodge Mining Company reported sales of $376.1 million in the 1992 third quarter, and $1,039.2 million in the 1992 nine-month period. Sales were $346.3 million and $981.4 million in the corresponding 1991 periods. The New York Commodity Exchange spot price per pound of copper cathode averaged $1.11 in the third quarter and $1.04 in the first nine months of 1992, compared with $1.03 and $1.05 in the corresponding 1991 periods.
 The Phelps Dodge Mining Company share of mine production from its worldwide operations was 141,200 tons of copper in the third quarter of 1992 and 397,400 tons in the first nine months, compared with 135,400 tons and 403,400 tons in the corresponding 1991 periods. Phelps Dodge Mining Company copper sales from mine production were 133,000 tons in the 1992 third quarter and 388,300 tons in the first nine months, compared with 143,300 tons and 421,600 tons in the corresponding 1991 periods.
 Phelps Dodge Industries recorded earnings from operations of $20.4 million in the 1992 third quarter and $68.2 million in the first nine months of 1992, compared with $18.6 million and $50.7 million in the corresponding 1991 periods. Higher 1992 earnings for the third quarter and first nine months reflected sustained volume improvements 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 $296.0 million in the 1992 third quarter and $886.7 million in the 1992 nine-month period. Sales were $271.3 million and $839.6 million in the corresponding 1991 periods.
 The company's total debt at September 30, 1992, was $483.7 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 19.0 percent at September 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)
 Third Quarter
 1992 1991
 Sales and other operating revenues 672.1 617.6
 Operating costs and expenses
 Cost of products sold 465.5 445.2
 Depreciation, depletion and amortization 40.5 33.6
 Selling and general administrative expense 26.5 26.6
 Exploration and research expense 14.6 14.3
 547.1 519.7
 Operating income 125.0 97.9
 Equity earnings 1.5 0.5
 Earnings from operations 126.5 98.4
 Interest expense less amount capitalized (9.7) (9.7)
 Gain from subsidiary's stock issuance 36.4 ---
 Other miscellaneous income and expense, net 3.3 4.7
 Income before taxes 156.5 93.4
 Provision for taxes (36.6) (28.7)
 Net income 119.9 64.7
 Earnings per share 1.70 0.93
 Average number of shares outstanding 70.5 69.7
 BUSINESS SEGMENTS
 (Unaudited; in millions)
 Sales and other operating revenues
 Phelps Dodge Mining Company 376.1 346.3
 Phelps Dodge Industries 296.0 271.3
 672.1 617.6
 Earnings from operations
 Phelps Dodge Mining Company 113.6 87.3
 Phelps Dodge Industries 20.4 18.6
 Corporate and other (7.5) (7.5)
 126.5 98.4
 PHELPS DODGE CORPORATION
 STATEMENT OF CONSOLIDATED OPERATIONS
 (Unaudited; in millions except per share data)
 First Nine Months
 1992 1991
 Sales and other operating revenues 1,925.9 1,821.0
 Operating costs and expenses
 Cost of products sold 1,380.4 1,295.7
 Depreciation, depletion and amortization 115.6 104.3
 Selling and general administrative expense 77.2 74.4
 Exploration and research expense 35.9 38.2
 1,609.1 1,512.6
 Operating income 316.8 308.4
 Equity earnings 4.0 1.2
 Earnings from operations 320.8 309.6
 Interest expense less amount capitalized (29.3) (27.2)
 Gain from subsidiary's stock issuance 36.4 ---
 Other miscellaneous income and expense, net 9.2 17.2
 Income before taxes 337.1 299.6
 Provision for taxes (96.2) (101.9)
 Net income 240.9 197.7
 Earnings per share 3.42 2.85
 Average number of shares outstanding 70.5 69.4
 BUSINESS SEGMENTS
 (Unaudited; in millions)
 Sales and other operating revenues
 Phelps Dodge Mining Company 1,039.2 981.4
 Phelps Dodge Industries 886.7 839.6
 1,925.9 1,821.0
 Earnings from operations
 Phelps Dodge Mining Company 274.9 280.2
 Phelps Dodge Industries 68.2 50.7
 Corporate and other (22.3) (21.3)
 320.8 309.6
 PHELPS DODGE CORPORATION
 CONSOLIDATED BALANCE SHEET
 (In millions)
 Sept. 30, Dec. 31,
 1992 1991
 (unaudited)
 Assets
 Cash and short-term investments, at cost 244.0 182.5
 Receivables, net 383.9 317.7
 Inventories 234.8 208.5
 Supplies 95.7 100.6
 Prepaid expenses 15.5 9.2
 Current assets 973.9 818.5
 Investments and long-term receivables 104.3 95.8
 Property, plant and equipment, net 1,961.9 1,894.5
 Other assets and deferred charges 244.7 242.4
 3,284.8 3,051.2
 Liabilities
 Current liabilities 520.8 476.8
 Long-term debt 379.2 382.0
 Deferred income taxes 184.6 157.5
 Other liabilities and deferred credits 135.2 140.4
 1,219.8 1,156.7
 Minority interest in subsidiaries 41.7 35.2
 Common shareholders' equity 2,023.3 1,859.3
 3,284.8 3,051.2
 PHELPS DODGE CORPORATION
 CONSOLIDATED STATEMENT OF CASH FLOWS
 (Unaudited; in millions)
 Nine months ended Sept. 30,
 1992 1991
 Operating activities
 Cash flow from operations 380.7 338.9
 Working capital and other adjustments (55.8) (22.4)
 Gain from subsidiary's stock issuance
 reclassified below (36.4) ---
 Net cash provided by
 operating activities 288.5 316.5
 Investing activities
 Capital outlays (193.3) (260.3)
 Proceeds from subsidiary's stock issuance 41.9 ---
 Other (5.7) (9.6)
 Net cash used in investing activities (157.1) (269.9)
 Financing activities
 Increase in debt 181.0 47.5
 Payment of debt (174.5) (36.4)
 Common dividends (84.0) (77.9)
 Other 7.6 7.1
 Net cash used in financing activities (69.9) (59.7)
 Increase (decrease) in cash and
 short-term investments 61.5 (13.1)
 Cash and short-term investments
 at beginning of period 182.5 161.6
 Cash and short-term investments
 at end of period 244.0 148.5
 -0- 10/20/92
 /CONTACT: Thomas M. Foster of Phelps Dodge, 602-234-8139/
 (PD) CO: Phelps Dodge Corp. ST: Arizona IN: MNG SU: ERN


JL -- SD004 -- 2042 10/20/92 09:14 EDT
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