DOW JONES NEWSWIRES 
 

Freeport-McMoRan Copper & Gold Inc.'s (FCX) second-quarter profit fell 37% as the prices for copper and molybdenum slumped, but the copper-mining company reported better-than-expected results on improved production.

Shares were up 2.4% to $58.36 in premarket trading. The stock has more than doubled this year, after slumping in the second half of 2008.

The company has posted weak data recently as slumping revenue over the past three quarters has been hurt by lower prices. While copper prices have rebounded recently as the dollar weakens and gains in worldwide equity markets suggest a more upbeat for economic growth, particularly in China, the U.S. housing market has shown little signs of improvement.

Freeport posted earnings of $812 million, or $1.38 a share, down from $1.28 billion, or $2.25 a share, a year earlier. Revenue dropped 32% to $3.68 billion on the price declines.

Analysts polled by Thomson Reuters expected per-share earnings of 69 cents on revenue of $3.38 billion.

Operating margins rose to 40.9% from 37.7%.

In the quarter, copper production rose 13%, while gold output more than tripled. Production of molybdenum, which is used in the making of steel, decreased 28%. The average realized prices fell 42% for copper and slumped 68% for molybdenum but rose 2.2% for gold.

Freeport reiterated its copper-sales view and slightly raised its full-year estimates for gold and molybdenum to 2.4 million ounces and 56 million pounds respectively. The old estimates were 2.3 million and 50 million. For the third quarter, Freeport expects 910 million pounds of copper, 550,000 ounces of gold and 15 million pounds of molybdenum.

Freeport also said it will redeem all of its outstanding senior notes due 2014 next month for $352 million. The company, which expects to record a charge of about $14 million related to the redemption, said $340 million of the principal amount of the notes is currently outstanding.

-By John Kell, Dow Jones Newswires; 212-416-2480; john.kell@dowjones.com