Freeport-McMoRan plans cost cuts after coronavirus loss

Revenue fell 26 percent to $2.8 billion

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Freeport-McMoRan Inc. swung to a loss for the first quarter and said it plans to reduce its operating costs for 2020 by $1.3 billion as the Covid-19 pandemic roils the global economy.

The mining company on Friday posted a net loss of $491 million, or 34 cents a share, compared with a profit of $31 million, or 2 cents a share, in the comparable quarter last year. Analysts polled by FactSet were expecting a loss of 18 cents a share.

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Revenue fell to $2.8 billion from $3.8 billion. Analysts were looking for $2.9 billion.

TickerSecurityLastChangeChange %
FCXFREEPORT-MCMORAN INC.9.07-0.02-0.22%

The company said it plans to cut $800 million, or about 30%, of its planned capital expenditures for the year, as well as $100 million, or roughly 20%, of its estimated exploration and administrative costs. In cutting costs, the company said it incorporated the effects of lower input costs, such as energy and foreign exchange rates, and higher gold prices.