Phelps Dodge Reports First Quarter Loss of 19 Cents Per Share Before Non-Recurring Items

Live Audio Webcast on April 27 at 8:30 a.m. (ET);

www.phelpsdodge.com for more details



2001 First Quarter Highlights



* Phelps Dodge reported a first quarter consolidated loss of

$14.7 million (19 cents per share) before non-recurring items, which

was in line with expectations announced in January. First quarter net

income including a non-recurring net gain was $14.2 million (18 cents

per share).



* Compared with earnings before non-recurring items of $20.7 million

(26 cents per share) in the first quarter of 2000, financial results

for the quarter reflected higher copper production costs due to

substantial increases in energy-related costs, combined with the

anticipated and temporary impact of the transition to total

mine-for-leach production at the company's Morenci, Arizona, operation.



* The New York Commodity Exchange (COMEX) copper price averaged 82 cents

per pound during the quarter, approximately the same price as in the

first quarter of 2000. The average COMEX price in the fourth quarter

of 2000 was 86 cents per pound.



* In March, the company unveiled a power cost stabilization plan that

will reduce electricity-related costs at its U.S. mining operations.

As announced, the plan consists of an additional negotiated firm power

contract; the construction of a power co-generation plant in New

Mexico; short-term, alternating production curtailments at the

company's Tyrone, Sierrita, Bagdad and Henderson operations; and a

partial production curtailment at Chino through at least year end that

resulted in the layoff of 130 workers. In total, these actions are

expected to reduce copper and molybdenum production in 2001 by

approximately 175 million pounds and 7 million pounds, respectively,

including partner's share. The company also has implemented diesel and

natural gas price protection programs to manage short-term fluctuations

in the costs of these energy products.



Apr 24, 2001, 01:00 ET from Phelps Dodge Corporation

    PHOENIX, April 24 /PRNewswire Interactive News Release/ -- Phelps Dodge
 Corporation (NYSE:   PD) today reported a consolidated loss in the 2001 first
 quarter of $14.7 million, or 19 cents per share, before a pre-tax,
 non-recurring net gain of $28.9 million ($28.9 million, or 37 cents per share,
 after taxes).  The non-recurring gain consisted of $30.9 million in recoveries
 associated with settlements reached with several insurance companies on
 historic environmental liability claims, combined with a $2.0 million charge
 for the cumulative effect of adopting SFAS No. 133 ("Accounting for Derivative
 Instruments and Hedging Activities").  Earnings for the first quarter of 2000
 were $20.7 million, or 26 cents per share, before pre-tax, non-recurring
 charges of $2.1 million ($1.3 million, or 1 cent per share, after taxes).
 Earnings including non-recurring items were $14.2 million, or 18 cents per
 share, in the 2001 first quarter and $19.4 million, or 25 cents per share, in
 the 2000 first quarter.
     J. Steven Whisler, chairman, president and chief executive officer, said:
 "While operationally we performed well in the first quarter, our financial
 results continued to be negatively impacted by high energy-related costs.  The
 alternating production curtailments being implemented this summer and our
 diesel and natural gas price protection programs are designed to help mitigate
 the impact of energy costs and have minimized the potential for job losses at
 our Arizona and New Mexico operations.  We continue to evaluate a number of
 additional programs, including alternative technologies, to mitigate further
 our energy-related costs.
     "The price of copper also softened modestly from the fourth quarter, and
 is presently 76 cents per pound.  We anticipate that current economic
 uncertainties will continue through the second quarter and may continue for
 the remainder of the year.  We are prepared to respond quickly to changing
 circumstances if necessary.
     "We have begun implementing a plan to improve operating income by
 $30 million in 2001, $100 million in 2002 and $150 million annually beginning
 in 2003.  This improvement will be achieved primarily through cost reductions
 associated with the restructuring and streamlining of professional,
 administrative and operations support functions within Phelps Dodge.
     "We remain optimistic that strong copper market fundamentals will prevail.
 The leverage inherent in our copper production portfolio, coupled with the
 actions we are taking today, will allow us to capture fully future copper
 price improvements for the benefit of our shareholders."
     Cash flow provided by operating activities was a negative $9.9 million in
 the first quarter, compared with a positive $124.3 million in the
 corresponding 2000 period.  The decrease primarily reflected lower operating
 earnings and increases in working capital including a temporary increase in
 copper inventories.
     Consolidated sales were $1,100.7 million in the 2001 first quarter,
 compared with $1,119.7 million in the corresponding 2000 period.  The decrease
 primarily resulted from lower sales volumes of PD-mined copper.
     Phelps Dodge Mining Company reported sales to unaffiliated customers of
 $726.5 million in the 2001 first quarter, compared with sales of
 $753.4 million in the corresponding 2000 period.  The COMEX spot price per
 pound of copper cathode averaged 82 cents in the 2001 first quarter, unchanged
 from the corresponding 2000 period.
     The Phelps Dodge Mining Company share of mine production from its
 worldwide operations was 294,200 tons of copper in the 2001 first quarter,
 compared with production of 304,400 tons in the corresponding 2000 period.
 The division's copper sales from mine production were 289,700 tons in the 2001
 first quarter, compared with 315,400 tons in the corresponding 2000 period.
 The decrease in copper production reflected the impact of the transition to
 total mine-for-leach production at Morenci, and the decrease in sales related
 to lower production in the 2001 first quarter and higher sales in the 2000
 first quarter as excess inventories stemming from the Cyprus acquisition were
 liquidated.
     Phelps Dodge Mining Company reported an operating loss of $5.1 million in
 the 2001 first quarter, compared with operating earnings of $68.3 million in
 the 2000 first quarter.  The decrease compared with the corresponding 2000
 period reflected lower sales volumes of PD-mined copper, higher energy costs
 and the anticipated temporary effects of transitioning to total mine-for-leach
 production at Morenci.
     The molybdenum business reported operating earnings of $0.1 million
 during the 2001 first quarter, compared with an operating loss of $3.1 million
 reported in the 2000 first quarter.  The improved performance was due to lower
 unit production costs, partially offset by lower average realized prices.  The
 Metals Week molybdenum oxide price during the 2001 first quarter was $2.25 per
 pound, compared with $2.54 per pound in the corresponding 2000 period.  Sales
 of molybdenum were 15.1 million pounds during the 2001 first quarter, compared
 with sales of 16.4 million pounds during the 2000 first quarter.  Production
 of molybdenum was 14.7 million pounds during the 2001 first quarter, compared
 with production of 12.7 million pounds during the 2000 first quarter.
     Phelps Dodge Industries reported sales of $374.2 million in the 2001 first
 quarter, compared with sales of $366.3 million in the corresponding 2000
 period.  Phelps Dodge Industries reported operating income of $26.7 million in
 the 2001 first quarter, compared with operating income of $29.0 million in the
 2000 first quarter before pre-tax, non-recurring charges of $2.1 million for
 wire and cable restructuring activities.  The decrease compared with the
 corresponding 2000 period principally was due to lower sales volumes in the
 specialty chemicals segment.
     The company's total debt at March 31, 2001, was $2,850.2 million, compared
 with $2,687.7 million at year-end 2000.  The company's ratio of debt to total
 capitalization was 47.9 percent at March 31, 2001, versus 45.7 percent at
 December 31, 2000.
     Capital expenditures and investments during the first quarter of 2001 were
 $63.9 million for Phelps Dodge Mining Company, $53.2 million for Phelps Dodge
 Industries (including $44.8 million for the contractually obligated
 acquisition of the remaining 40 percent share of the company's wire and cable
 manufacturing operation in Brazil) and $6.4 million for other Corporate-
 related activities.  Capital expenditures and investments in the corresponding
 2000 period were $44.9 million for Phelps Dodge Mining Company, $11.6 million
 for Phelps Dodge Industries and $13.2 million for Corporate and other.
     On March 9, 2001, the company paid a regular quarterly dividend of
 50 cents per share on its common shares for the 2001 first quarter; the amount
 paid for the quarter was $39.4 million.  There were 78.7 million shares
 outstanding at quarter end.
     Phelps Dodge is the world's second largest producer of copper.  The
 company also is the world's largest producer of continuous-cast copper rod and
 molybdenum and is ranked among the world's largest producers of carbon black
 and magnet wire.  Phelps Dodge has operations and investments in mines and
 manufacturing facilities in 27 countries.
     For related Phelps Dodge news, refer to the company's announcement
 entitled "Phelps Dodge Targets Annual Operating Income Improvements of
 $150 Million" issued today.
     The public is invited to listen to a live audio webcast of the company's
 first quarter conference call with the financial community on Friday, April 27
 at 8:30 a.m. Eastern time.  Management plans to discuss 2001 first quarter
 results, as well as provide its outlook for the 2001 second quarter and full
 year.  Information pertaining to the webcast can be found at the company's
 website -- http://www.phelpsdodge.com.
 
     This news release contains forward-looking statements, as that term is
 defined in the Private Securities Litigation Reform Act of 1995.  In addition
 to the risks and uncertainties noted in this news release, there are certain
 factors that could cause results to differ materially from those anticipated
 by some of the statements made.  These factors are listed in Management's
 Discussion and Analysis in the company's most recently filed annual report on
 Form 10-K for the fiscal year ended December 31, 2000.
 
      Phelps Dodge Corporation
      Statement of Consolidated Operations
      (Unaudited; in millions except per share data)
                                                     First Quarter
                                                     2001     2000
 
     Sales and other operating revenues            1,100.7  1,119.7
 
     Operating costs and expenses
      Cost of products sold                          933.7    873.4
      Depreciation, depletion and amortization       116.5    119.4
      Selling and general administrative expense      32.2     32.2
      Exploration and research expense                14.8     12.8
      Non-recurring items and provisions             (30.9)     2.1
 
                                                   1,066.3  1,039.9
 
     Operating income                                 34.4     79.8
      Interest expense                               (53.4)   (55.4)
      Capitalized interest                             0.6      0.4
      Miscellaneous income and expense, net            3.7      6.4
 
     Income (loss) before taxes, minority interests,
      equity in net earnings of affiliated companies
       and cumulative effect of accounting change    (14.7)    31.2
      Provision for taxes on income                   33.3    (11.2)
      Minority interests in consolidated
       subsidiaries                                   (1.6)    (1.4)
      Equity in net earnings of affiliated
       companies                                      (0.8)     0.8
     Income before cumulative effect of
      accounting change                               16.2     19.4
      Cumulative effect of accounting change
       (SFAS No. 133)                                 (2.0)       -
 
     Net income                                       14.2     19.4
 
     Average number of shares outstanding - basic     78.5     78.4
 
     Basic earnings per share before cumulative
      effect of accounting change                     0.21     0.25
      Cumulative effect of accounting change
       (SFAS No. 133)                                (0.03)       -
 
     Basic earnings per share                         0.18     0.25
 
     Average number of shares outstanding - diluted   78.8     78.8
 
     Diluted earnings per share before
      cumulative effect of accounting change          0.21     0.25
      Cumulative effect of accounting change
       (SFAS No. 133)                                (0.03)       -
 
     Diluted earnings per share                       0.18     0.25
 
 
     Business Divisions
     (In millions)
 
     Sales and other operating revenues
      - unaffiliated customers
      Phelps Dodge Mining Company                    726.5    753.4
      Phelps Dodge Industries                        374.2    366.3
 
                                                   1,100.7  1,119.7
 
     Operating income (loss)
      Phelps Dodge Mining Company                     (5.1)    68.3
      Phelps Dodge Industries                         26.7     26.9
      Corporate and other                             12.8    (15.4)
 
                                                      34.4     79.8
 
     See Notes to Consolidated Financial Information.
 
 
      Phelps Dodge Corporation
      Consolidated Balance Sheet
      (Unaudited; in millions)                   March 31,  Dec. 31,
                                                     2001     2000
 
     Assets
      Cash and cash equivalents                      244.2    250.0
      Accounts receivable, net                       609.3    528.7
      Inventories and supplies                       625.7    602.7
      Prepaid expenses                                42.5     36.7
      Deferred income taxes                           89.5     89.5
 
         Current assets                            1,611.2  1,507.6
      Net property, plant and equipment and
       other assets                                6,251.3  6,278.1
      Non-current deferred income taxes               45.1     45.1
 
                                                   7,907.6  7,830.8
 
     Liabilities
      Short-term debt                                690.2    518.2
      Current portion of long-term debt              306.8    206.5
      Accounts payable and accrued expenses          696.2    669.8
      Income taxes                                     8.7     23.4
 
         Current liabilities                       1,701.9  1,417.9
      Long-term debt                               1,853.2  1,963.0
      Deferred income taxes                          426.3    439.0
      Other liabilities and deferred credits         825.1    814.2
 
                                                   4,806.5  4,634.1
 
     Minority interests in consolidated
      subsidiaries                                    67.2     91.7
 
     Common shareholders' equity
      Common shares, 78.7 outstanding
       (12/31/00 - 78.7)                             491.9    491.9
      Capital in excess of par value               1,017.4  1,017.7
      Retained earnings                            1,806.5  1,831.7
      Accumulated other comprehensive
       income (loss)                                (272.9)  (226.4)
      Other                                           (9.0)    (9.9)
 
                                                   3,033.9  3,105.0
 
                                                   7,907.6  7,830.8
 
     See Notes to Consolidated Financial Information.
 
 
      Phelps Dodge Corporation
      Consolidated Statement of Cash Flows
      (Unaudited; in millions)
                                        Three months ended March 31,
                                                       2001    2000
     Operating activities
      Net income                                       14.2     19.4
      Adjustments to reconcile net income to net
       cash provided by operating activities:
        Depreciation, depletion and amortization      116.5    119.4
        Deferred income taxes                         (18.3)     6.3
        Equity earnings (loss) net of dividends
         received                                       1.3     (0.2)
        Changes in current assets and liabilities:
         Accounts receivable                          (63.9)    (6.3)
         Inventories                                  (26.5)    24.9
         Supplies                                      (1.8)    (0.5)
         Prepaid expenses                              (5.7)   (17.0)
         Deferred income taxes                          0.2     (0.1)
         Interest payable                              34.1     22.2
         Other accounts payable                        10.1     15.9
         Accrued income taxes                         (14.5)   (22.6)
         Other accrued expenses                        (7.9)   (32.3)
        Non-recurring charges and provisions          (30.9)     2.1
        Other adjustments, net                        (16.8)    (6.9)
 
        Net cash provided by (used in) operating
         activities                                    (9.9)   124.3
 
     Investing activities
      Capital outlays                                 (77.1)   (62.2)
      Capitalized interest                             (0.6)    (0.4)
      Investment in subsidiaries                      (46.4)    (7.5)
      Proceeds from asset dispositions and
       other, net                                       1.4    149.4
 
       Net cash provided by (used in)
        investing activities                         (122.7)    79.3
 
     Financing activities
      Increase in debt                                175.9      5.2
      Payment of debt                                  (9.6)   (93.3)
      Common dividends                                (39.4)   (39.4)
      Other, net                                       (0.1)     1.3
 
       Net cash provided by (used in)
        financing activities                          126.8   (126.2)
 
 
     Increase (decrease) in cash and
      cash equivalents                                 (5.8)    77.4
     Cash and cash equivalents
      at beginning of period                          250.0    234.2
 
     Cash and cash equivalents at end of period       244.2    311.6
 
     See Notes to Consolidated Financial Information.
 
 
      Phelps Dodge Corporation
      Financial and Operating Statistics by Business Segment
      (Dollars in millions except copper and molybdenum prices)
 
                                                      First Quarter
                                                       (Unaudited)
                                                       2001    2000
     Phelps Dodge Mining Company:
      Sales and other operating revenues
       - unaffiliated customers                       726.5    753.4
      Operating income (loss)                          (5.1)    68.3
      COMEX copper price per pound                     0.82     0.82
      Copper production (thousand tons):
       Morenci:
        Concentrate                                    24.1     38.0
        Electrowon                                     74.3     73.4
       Tyrone:
        Electrowon                                     19.1     19.5
       Chino:
        Concentrate and precipitate                    18.3     21.7
        Electrowon                                     11.0     13.7
       Bagdad:
        Concentrate                                    28.3     26.6
        Electrowon                                      2.5      3.0
       Sierrita:
        Concentrate                                    25.3     23.5
        Electrowon                                      6.9      6.7
       Miami:
        Electrowon                                     12.0     14.8
       Candelaria:
        Concentrate                                    56.8     54.1
       Cerro Verde:
        Electrowon                                     20.1     19.5
       El Abra:
        Electrowon                                     59.6     57.6
       Other                                            0.9     (0.3)
 
        Total copper production                       359.2    371.8
       Less minority participants' shares (A)          65.0     67.4
 
        Net Phelps Dodge share                        294.2    304.4
 
     Copper sales (thousand tons):
      Net Phelps Dodge share from own mines           289.7    315.4
      Purchased copper                                113.8     99.0
 
       Total copper sales                             403.5    414.4
 
     Molybdenum concentrate production (million
      pounds):                                         14.7     12.7
 
     Molybdenum sales (million pounds):                15.1     16.4
 
     Metals Week - molybdenum oxide price per pound    2.25     2.54
 
 
     (A) Minority participant interests include (i) a 15 percent undivided
         interest in the Morenci, Arizona, copper mining complex, (ii) a
         one-third partnership interest in Chino Mines Company in New Mexico,
         (iii) a 20 percent interest in the Candelaria copper mining complex
         in Chile and (iv) a 49 percent interest in the El Abra copper mining
         operation in Chile.
 
 
     Phelps Dodge Industries:
      Sales and other operating revenues
       - unaffiliated customers:
       Specialty chemicals                            161.5    154.9
       Wire and cable                                 212.7    211.4
 
                                                      374.2    366.3
 
      Operating income:
       Specialty chemicals                             20.2     24.7
       Wire and cable (B)                               6.5      2.2
 
                                                       26.7     26.9
 
 
     (B) Includes a pre-tax charge of $2.1 million in the 2000 first quarter
         for costs associated with the June 30, 1999, restructuring plan.
 
 
      PHELPS DODGE CORPORATION
      NOTES TO CONSOLIDATED FINANCIAL INFORMATION
 
      1.  Non-Recurring Items
 
      In the first quarter of 2001, a non-recurring, net pre-tax gain of
      $28.9 million was recognized consisting of $30.9 million in recoveries
      associated with settlements reached with several insurance companies on
      historic environmental liability claims, combined with a $2.0 million
      charge for the cumulative effect of an accounting change (see Note 3).
 
      In the first quarter of 2000, a non-recurring, pre-tax charge of
      $2.1 million was recognized by Phelps Dodge Industries in conjunction
      with the June 30, 1999, restructuring plan.  The components of the
      restructuring plan related to employee severance and disposal and
      dismantling.
 
      2.  Provision for Taxes on Income
 
      The effective tax rate on earnings before non-recurring items was
      73 percent in the 2001 first quarter.  That rate is based on Phelps
      Dodge's full year earnings forecast reflecting a COMEX copper price of
      85 cents per pound and a blend of the company's worldwide tax rates.  It
      exceeds an expected tax rate of 37 percent due to certain operations
      generating losses that do not currently result in the recognition of any
      tax benefit while other operations are generating taxable income.
 
      3.  Adoption of "Accounting for Derivative Instruments and Hedging
      Activities" (SFAS No. 133)
 
      Phelps Dodge does not purchase, hold or sell derivative contracts unless
      it has an existing asset, or obligation, or anticipates a future activity
      that is likely to occur and will result in exposure to market risk.  The
      company uses various strategies to manage its market risk, including the
      use of derivative contracts to limit, offset or reduce its market
      exposure.  Derivative instruments are used to manage well-defined
      commodity price, foreign exchange and interest rate risks from its
      primary business activities.  The fair values of the company's derivative
      instruments are based on quoted market prices for similar instruments and
      on market closing prices at quarter end.  For further discussion, refer
      to Phelps Dodge's consolidated financial statements and notes thereto
      included in Form 10-K for the year ended December 31, 2000.
 
      Effective January 1, 2001, Phelps Dodge adopted SFAS No. 133, "Accounting
      for Derivative Instruments and Hedging Activities," that incorporates the
      amendments contained in SFAS No. 137, "Accounting for Derivative
      Instruments and Hedging Activities-Deferral of the Effective Date of FASB
      Statement No. 133," and SFAS No. 138, "Accounting for Certain Derivative
      Instruments and Certain Hedging Activities," an amendment of Statement
      133.  The Statement, as amended, establishes accounting and reporting
      standards for derivative instruments, including certain derivative
      instruments embedded in other contracts and for hedging activities.  All
      derivatives, whether designated in hedging relationships or not, are
      required to be recorded on the balance sheet at fair value.  If the
      derivative is designated as a fair value hedge, the changes in the fair
      value of the derivative and of the hedged item attributable to the hedged
      risk are recognized in earnings.  If the derivative is designated as a
      cash flow hedge, the effective portions of changes in the fair value of
      the derivative are recorded in other comprehensive income (OCI) and are
      recognized in the income statement when the hedged item affects earnings.
      Ineffective portions of changes in the fair value of cash flow hedges are
      recognized in earnings.
 
      The adoption of SFAS No. 133 on January 1, 2001, resulted in a cumulative
      pre-tax reduction to income of $2.0 million ($2.0 million after-tax).
      The reduction was attributable to a loss relating to the fair value of
      certain of the company's copper price protection arrangements that did
      not qualify as hedging instruments under the new standard.  The net
      derivative losses included in OCI as of January 1, 2001, will be
      recognized in earnings as the associated hedge risk is realized.
 
 
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SOURCE Phelps Dodge Corporation
    PHOENIX, April 24 /PRNewswire Interactive News Release/ -- Phelps Dodge
 Corporation (NYSE:   PD) today reported a consolidated loss in the 2001 first
 quarter of $14.7 million, or 19 cents per share, before a pre-tax,
 non-recurring net gain of $28.9 million ($28.9 million, or 37 cents per share,
 after taxes).  The non-recurring gain consisted of $30.9 million in recoveries
 associated with settlements reached with several insurance companies on
 historic environmental liability claims, combined with a $2.0 million charge
 for the cumulative effect of adopting SFAS No. 133 ("Accounting for Derivative
 Instruments and Hedging Activities").  Earnings for the first quarter of 2000
 were $20.7 million, or 26 cents per share, before pre-tax, non-recurring
 charges of $2.1 million ($1.3 million, or 1 cent per share, after taxes).
 Earnings including non-recurring items were $14.2 million, or 18 cents per
 share, in the 2001 first quarter and $19.4 million, or 25 cents per share, in
 the 2000 first quarter.
     J. Steven Whisler, chairman, president and chief executive officer, said:
 "While operationally we performed well in the first quarter, our financial
 results continued to be negatively impacted by high energy-related costs.  The
 alternating production curtailments being implemented this summer and our
 diesel and natural gas price protection programs are designed to help mitigate
 the impact of energy costs and have minimized the potential for job losses at
 our Arizona and New Mexico operations.  We continue to evaluate a number of
 additional programs, including alternative technologies, to mitigate further
 our energy-related costs.
     "The price of copper also softened modestly from the fourth quarter, and
 is presently 76 cents per pound.  We anticipate that current economic
 uncertainties will continue through the second quarter and may continue for
 the remainder of the year.  We are prepared to respond quickly to changing
 circumstances if necessary.
     "We have begun implementing a plan to improve operating income by
 $30 million in 2001, $100 million in 2002 and $150 million annually beginning
 in 2003.  This improvement will be achieved primarily through cost reductions
 associated with the restructuring and streamlining of professional,
 administrative and operations support functions within Phelps Dodge.
     "We remain optimistic that strong copper market fundamentals will prevail.
 The leverage inherent in our copper production portfolio, coupled with the
 actions we are taking today, will allow us to capture fully future copper
 price improvements for the benefit of our shareholders."
     Cash flow provided by operating activities was a negative $9.9 million in
 the first quarter, compared with a positive $124.3 million in the
 corresponding 2000 period.  The decrease primarily reflected lower operating
 earnings and increases in working capital including a temporary increase in
 copper inventories.
     Consolidated sales were $1,100.7 million in the 2001 first quarter,
 compared with $1,119.7 million in the corresponding 2000 period.  The decrease
 primarily resulted from lower sales volumes of PD-mined copper.
     Phelps Dodge Mining Company reported sales to unaffiliated customers of
 $726.5 million in the 2001 first quarter, compared with sales of
 $753.4 million in the corresponding 2000 period.  The COMEX spot price per
 pound of copper cathode averaged 82 cents in the 2001 first quarter, unchanged
 from the corresponding 2000 period.
     The Phelps Dodge Mining Company share of mine production from its
 worldwide operations was 294,200 tons of copper in the 2001 first quarter,
 compared with production of 304,400 tons in the corresponding 2000 period.
 The division's copper sales from mine production were 289,700 tons in the 2001
 first quarter, compared with 315,400 tons in the corresponding 2000 period.
 The decrease in copper production reflected the impact of the transition to
 total mine-for-leach production at Morenci, and the decrease in sales related
 to lower production in the 2001 first quarter and higher sales in the 2000
 first quarter as excess inventories stemming from the Cyprus acquisition were
 liquidated.
     Phelps Dodge Mining Company reported an operating loss of $5.1 million in
 the 2001 first quarter, compared with operating earnings of $68.3 million in
 the 2000 first quarter.  The decrease compared with the corresponding 2000
 period reflected lower sales volumes of PD-mined copper, higher energy costs
 and the anticipated temporary effects of transitioning to total mine-for-leach
 production at Morenci.
     The molybdenum business reported operating earnings of $0.1 million
 during the 2001 first quarter, compared with an operating loss of $3.1 million
 reported in the 2000 first quarter.  The improved performance was due to lower
 unit production costs, partially offset by lower average realized prices.  The
 Metals Week molybdenum oxide price during the 2001 first quarter was $2.25 per
 pound, compared with $2.54 per pound in the corresponding 2000 period.  Sales
 of molybdenum were 15.1 million pounds during the 2001 first quarter, compared
 with sales of 16.4 million pounds during the 2000 first quarter.  Production
 of molybdenum was 14.7 million pounds during the 2001 first quarter, compared
 with production of 12.7 million pounds during the 2000 first quarter.
     Phelps Dodge Industries reported sales of $374.2 million in the 2001 first
 quarter, compared with sales of $366.3 million in the corresponding 2000
 period.  Phelps Dodge Industries reported operating income of $26.7 million in
 the 2001 first quarter, compared with operating income of $29.0 million in the
 2000 first quarter before pre-tax, non-recurring charges of $2.1 million for
 wire and cable restructuring activities.  The decrease compared with the
 corresponding 2000 period principally was due to lower sales volumes in the
 specialty chemicals segment.
     The company's total debt at March 31, 2001, was $2,850.2 million, compared
 with $2,687.7 million at year-end 2000.  The company's ratio of debt to total
 capitalization was 47.9 percent at March 31, 2001, versus 45.7 percent at
 December 31, 2000.
     Capital expenditures and investments during the first quarter of 2001 were
 $63.9 million for Phelps Dodge Mining Company, $53.2 million for Phelps Dodge
 Industries (including $44.8 million for the contractually obligated
 acquisition of the remaining 40 percent share of the company's wire and cable
 manufacturing operation in Brazil) and $6.4 million for other Corporate-
 related activities.  Capital expenditures and investments in the corresponding
 2000 period were $44.9 million for Phelps Dodge Mining Company, $11.6 million
 for Phelps Dodge Industries and $13.2 million for Corporate and other.
     On March 9, 2001, the company paid a regular quarterly dividend of
 50 cents per share on its common shares for the 2001 first quarter; the amount
 paid for the quarter was $39.4 million.  There were 78.7 million shares
 outstanding at quarter end.
     Phelps Dodge is the world's second largest producer of copper.  The
 company also is the world's largest producer of continuous-cast copper rod and
 molybdenum and is ranked among the world's largest producers of carbon black
 and magnet wire.  Phelps Dodge has operations and investments in mines and
 manufacturing facilities in 27 countries.
     For related Phelps Dodge news, refer to the company's announcement
 entitled "Phelps Dodge Targets Annual Operating Income Improvements of
 $150 Million" issued today.
     The public is invited to listen to a live audio webcast of the company's
 first quarter conference call with the financial community on Friday, April 27
 at 8:30 a.m. Eastern time.  Management plans to discuss 2001 first quarter
 results, as well as provide its outlook for the 2001 second quarter and full
 year.  Information pertaining to the webcast can be found at the company's
 website -- http://www.phelpsdodge.com.
 
     This news release contains forward-looking statements, as that term is
 defined in the Private Securities Litigation Reform Act of 1995.  In addition
 to the risks and uncertainties noted in this news release, there are certain
 factors that could cause results to differ materially from those anticipated
 by some of the statements made.  These factors are listed in Management's
 Discussion and Analysis in the company's most recently filed annual report on
 Form 10-K for the fiscal year ended December 31, 2000.
 
      Phelps Dodge Corporation
      Statement of Consolidated Operations
      (Unaudited; in millions except per share data)
                                                     First Quarter
                                                     2001     2000
 
     Sales and other operating revenues            1,100.7  1,119.7
 
     Operating costs and expenses
      Cost of products sold                          933.7    873.4
      Depreciation, depletion and amortization       116.5    119.4
      Selling and general administrative expense      32.2     32.2
      Exploration and research expense                14.8     12.8
      Non-recurring items and provisions             (30.9)     2.1
 
                                                   1,066.3  1,039.9
 
     Operating income                                 34.4     79.8
      Interest expense                               (53.4)   (55.4)
      Capitalized interest                             0.6      0.4
      Miscellaneous income and expense, net            3.7      6.4
 
     Income (loss) before taxes, minority interests,
      equity in net earnings of affiliated companies
       and cumulative effect of accounting change    (14.7)    31.2
      Provision for taxes on income                   33.3    (11.2)
      Minority interests in consolidated
       subsidiaries                                   (1.6)    (1.4)
      Equity in net earnings of affiliated
       companies                                      (0.8)     0.8
     Income before cumulative effect of
      accounting change                               16.2     19.4
      Cumulative effect of accounting change
       (SFAS No. 133)                                 (2.0)       -
 
     Net income                                       14.2     19.4
 
     Average number of shares outstanding - basic     78.5     78.4
 
     Basic earnings per share before cumulative
      effect of accounting change                     0.21     0.25
      Cumulative effect of accounting change
       (SFAS No. 133)                                (0.03)       -
 
     Basic earnings per share                         0.18     0.25
 
     Average number of shares outstanding - diluted   78.8     78.8
 
     Diluted earnings per share before
      cumulative effect of accounting change          0.21     0.25
      Cumulative effect of accounting change
       (SFAS No. 133)                                (0.03)       -
 
     Diluted earnings per share                       0.18     0.25
 
 
     Business Divisions
     (In millions)
 
     Sales and other operating revenues
      - unaffiliated customers
      Phelps Dodge Mining Company                    726.5    753.4
      Phelps Dodge Industries                        374.2    366.3
 
                                                   1,100.7  1,119.7
 
     Operating income (loss)
      Phelps Dodge Mining Company                     (5.1)    68.3
      Phelps Dodge Industries                         26.7     26.9
      Corporate and other                             12.8    (15.4)
 
                                                      34.4     79.8
 
     See Notes to Consolidated Financial Information.
 
 
      Phelps Dodge Corporation
      Consolidated Balance Sheet
      (Unaudited; in millions)                   March 31,  Dec. 31,
                                                     2001     2000
 
     Assets
      Cash and cash equivalents                      244.2    250.0
      Accounts receivable, net                       609.3    528.7
      Inventories and supplies                       625.7    602.7
      Prepaid expenses                                42.5     36.7
      Deferred income taxes                           89.5     89.5
 
         Current assets                            1,611.2  1,507.6
      Net property, plant and equipment and
       other assets                                6,251.3  6,278.1
      Non-current deferred income taxes               45.1     45.1
 
                                                   7,907.6  7,830.8
 
     Liabilities
      Short-term debt                                690.2    518.2
      Current portion of long-term debt              306.8    206.5
      Accounts payable and accrued expenses          696.2    669.8
      Income taxes                                     8.7     23.4
 
         Current liabilities                       1,701.9  1,417.9
      Long-term debt                               1,853.2  1,963.0
      Deferred income taxes                          426.3    439.0
      Other liabilities and deferred credits         825.1    814.2
 
                                                   4,806.5  4,634.1
 
     Minority interests in consolidated
      subsidiaries                                    67.2     91.7
 
     Common shareholders' equity
      Common shares, 78.7 outstanding
       (12/31/00 - 78.7)                             491.9    491.9
      Capital in excess of par value               1,017.4  1,017.7
      Retained earnings                            1,806.5  1,831.7
      Accumulated other comprehensive
       income (loss)                                (272.9)  (226.4)
      Other                                           (9.0)    (9.9)
 
                                                   3,033.9  3,105.0
 
                                                   7,907.6  7,830.8
 
     See Notes to Consolidated Financial Information.
 
 
      Phelps Dodge Corporation
      Consolidated Statement of Cash Flows
      (Unaudited; in millions)
                                        Three months ended March 31,
                                                       2001    2000
     Operating activities
      Net income                                       14.2     19.4
      Adjustments to reconcile net income to net
       cash provided by operating activities:
        Depreciation, depletion and amortization      116.5    119.4
        Deferred income taxes                         (18.3)     6.3
        Equity earnings (loss) net of dividends
         received                                       1.3     (0.2)
        Changes in current assets and liabilities:
         Accounts receivable                          (63.9)    (6.3)
         Inventories                                  (26.5)    24.9
         Supplies                                      (1.8)    (0.5)
         Prepaid expenses                              (5.7)   (17.0)
         Deferred income taxes                          0.2     (0.1)
         Interest payable                              34.1     22.2
         Other accounts payable                        10.1     15.9
         Accrued income taxes                         (14.5)   (22.6)
         Other accrued expenses                        (7.9)   (32.3)
        Non-recurring charges and provisions          (30.9)     2.1
        Other adjustments, net                        (16.8)    (6.9)
 
        Net cash provided by (used in) operating
         activities                                    (9.9)   124.3
 
     Investing activities
      Capital outlays                                 (77.1)   (62.2)
      Capitalized interest                             (0.6)    (0.4)
      Investment in subsidiaries                      (46.4)    (7.5)
      Proceeds from asset dispositions and
       other, net                                       1.4    149.4
 
       Net cash provided by (used in)
        investing activities                         (122.7)    79.3
 
     Financing activities
      Increase in debt                                175.9      5.2
      Payment of debt                                  (9.6)   (93.3)
      Common dividends                                (39.4)   (39.4)
      Other, net                                       (0.1)     1.3
 
       Net cash provided by (used in)
        financing activities                          126.8   (126.2)
 
 
     Increase (decrease) in cash and
      cash equivalents                                 (5.8)    77.4
     Cash and cash equivalents
      at beginning of period                          250.0    234.2
 
     Cash and cash equivalents at end of period       244.2    311.6
 
     See Notes to Consolidated Financial Information.
 
 
      Phelps Dodge Corporation
      Financial and Operating Statistics by Business Segment
      (Dollars in millions except copper and molybdenum prices)
 
                                                      First Quarter
                                                       (Unaudited)
                                                       2001    2000
     Phelps Dodge Mining Company:
      Sales and other operating revenues
       - unaffiliated customers                       726.5    753.4
      Operating income (loss)                          (5.1)    68.3
      COMEX copper price per pound                     0.82     0.82
      Copper production (thousand tons):
       Morenci:
        Concentrate                                    24.1     38.0
        Electrowon                                     74.3     73.4
       Tyrone:
        Electrowon                                     19.1     19.5
       Chino:
        Concentrate and precipitate                    18.3     21.7
        Electrowon                                     11.0     13.7
       Bagdad:
        Concentrate                                    28.3     26.6
        Electrowon                                      2.5      3.0
       Sierrita:
        Concentrate                                    25.3     23.5
        Electrowon                                      6.9      6.7
       Miami:
        Electrowon                                     12.0     14.8
       Candelaria:
        Concentrate                                    56.8     54.1
       Cerro Verde:
        Electrowon                                     20.1     19.5
       El Abra:
        Electrowon                                     59.6     57.6
       Other                                            0.9     (0.3)
 
        Total copper production                       359.2    371.8
       Less minority participants' shares (A)          65.0     67.4
 
        Net Phelps Dodge share                        294.2    304.4
 
     Copper sales (thousand tons):
      Net Phelps Dodge share from own mines           289.7    315.4
      Purchased copper                                113.8     99.0
 
       Total copper sales                             403.5    414.4
 
     Molybdenum concentrate production (million
      pounds):                                         14.7     12.7
 
     Molybdenum sales (million pounds):                15.1     16.4
 
     Metals Week - molybdenum oxide price per pound    2.25     2.54
 
 
     (A) Minority participant interests include (i) a 15 percent undivided
         interest in the Morenci, Arizona, copper mining complex, (ii) a
         one-third partnership interest in Chino Mines Company in New Mexico,
         (iii) a 20 percent interest in the Candelaria copper mining complex
         in Chile and (iv) a 49 percent interest in the El Abra copper mining
         operation in Chile.
 
 
     Phelps Dodge Industries:
      Sales and other operating revenues
       - unaffiliated customers:
       Specialty chemicals                            161.5    154.9
       Wire and cable                                 212.7    211.4
 
                                                      374.2    366.3
 
      Operating income:
       Specialty chemicals                             20.2     24.7
       Wire and cable (B)                               6.5      2.2
 
                                                       26.7     26.9
 
 
     (B) Includes a pre-tax charge of $2.1 million in the 2000 first quarter
         for costs associated with the June 30, 1999, restructuring plan.
 
 
      PHELPS DODGE CORPORATION
      NOTES TO CONSOLIDATED FINANCIAL INFORMATION
 
      1.  Non-Recurring Items
 
      In the first quarter of 2001, a non-recurring, net pre-tax gain of
      $28.9 million was recognized consisting of $30.9 million in recoveries
      associated with settlements reached with several insurance companies on
      historic environmental liability claims, combined with a $2.0 million
      charge for the cumulative effect of an accounting change (see Note 3).
 
      In the first quarter of 2000, a non-recurring, pre-tax charge of
      $2.1 million was recognized by Phelps Dodge Industries in conjunction
      with the June 30, 1999, restructuring plan.  The components of the
      restructuring plan related to employee severance and disposal and
      dismantling.
 
      2.  Provision for Taxes on Income
 
      The effective tax rate on earnings before non-recurring items was
      73 percent in the 2001 first quarter.  That rate is based on Phelps
      Dodge's full year earnings forecast reflecting a COMEX copper price of
      85 cents per pound and a blend of the company's worldwide tax rates.  It
      exceeds an expected tax rate of 37 percent due to certain operations
      generating losses that do not currently result in the recognition of any
      tax benefit while other operations are generating taxable income.
 
      3.  Adoption of "Accounting for Derivative Instruments and Hedging
      Activities" (SFAS No. 133)
 
      Phelps Dodge does not purchase, hold or sell derivative contracts unless
      it has an existing asset, or obligation, or anticipates a future activity
      that is likely to occur and will result in exposure to market risk.  The
      company uses various strategies to manage its market risk, including the
      use of derivative contracts to limit, offset or reduce its market
      exposure.  Derivative instruments are used to manage well-defined
      commodity price, foreign exchange and interest rate risks from its
      primary business activities.  The fair values of the company's derivative
      instruments are based on quoted market prices for similar instruments and
      on market closing prices at quarter end.  For further discussion, refer
      to Phelps Dodge's consolidated financial statements and notes thereto
      included in Form 10-K for the year ended December 31, 2000.
 
      Effective January 1, 2001, Phelps Dodge adopted SFAS No. 133, "Accounting
      for Derivative Instruments and Hedging Activities," that incorporates the
      amendments contained in SFAS No. 137, "Accounting for Derivative
      Instruments and Hedging Activities-Deferral of the Effective Date of FASB
      Statement No. 133," and SFAS No. 138, "Accounting for Certain Derivative
      Instruments and Certain Hedging Activities," an amendment of Statement
      133.  The Statement, as amended, establishes accounting and reporting
      standards for derivative instruments, including certain derivative
      instruments embedded in other contracts and for hedging activities.  All
      derivatives, whether designated in hedging relationships or not, are
      required to be recorded on the balance sheet at fair value.  If the
      derivative is designated as a fair value hedge, the changes in the fair
      value of the derivative and of the hedged item attributable to the hedged
      risk are recognized in earnings.  If the derivative is designated as a
      cash flow hedge, the effective portions of changes in the fair value of
      the derivative are recorded in other comprehensive income (OCI) and are
      recognized in the income statement when the hedged item affects earnings.
      Ineffective portions of changes in the fair value of cash flow hedges are
      recognized in earnings.
 
      The adoption of SFAS No. 133 on January 1, 2001, resulted in a cumulative
      pre-tax reduction to income of $2.0 million ($2.0 million after-tax).
      The reduction was attributable to a loss relating to the fair value of
      certain of the company's copper price protection arrangements that did
      not qualify as hedging instruments under the new standard.  The net
      derivative losses included in OCI as of January 1, 2001, will be
      recognized in earnings as the associated hedge risk is realized.
 
 
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