Phelps Dodge Targets Annual Operating Income Improvements of $150 Million

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

    PHOENIX, April 24 /PRNewswire Interactive News Release/ -- Phelps Dodge
 Corporation (NYSE:   PD) today announced it is implementing a plan to improve
 operating income by $30 million in 2001, $100 million in 2002, and
 $150 million annually beginning in 2003.  The operating income improvements
 will be achieved primarily through a restructuring of its professional,
 administrative and operations support functions.
     Phelps Dodge will transition to shared service models to provide
 consistent and more efficient delivery of human resources, information
 systems, accounting and finance, legal, engineering, environmental, training
 and other professional services to its operating units.  The redesign and
 consolidation of some functions, as well as business process streamlining,
 program reductions and the elimination of 500 positions, will occur during the
 shift to shared services.
     Phelps Dodge Chairman, President and CEO J. Steven Whisler said: "Our
 financial results have been negatively impacted by energy-related costs and
 general economic conditions.  We announced in March a series of actions to
 help address those issues, and this restructuring program will further assist
 us.
     "Through the new structure we are creating, we expect to deliver even
 higher quality, professional services and operations support.  While these
 changes will result in more cost-effective management, the non-financial gains
 also will be significant.  We will transform our delivery of professional
 services and operations support using a shared service approach to create
 common processes within critical business functions.  The company will benefit
 as we eliminate the variability in cost, quality, efficiency and service.
     "We remain optimistic that strong copper market fundamentals will prevail.
 As the copper price improves and we quickly capture operating income
 improvements, our shareholders will benefit from the leverage inherent in our
 copper production portfolio."
     Employees at Phelps Dodge Mining Company operations and corporate and
 administrative offices throughout North and South America will be affected by
 restructuring-related job reductions.  The elimination of these positions is
 unrelated to the March 26 renewal of the Worker Adjustment and Retraining
 Notification (WARN) Act notices announced on Jan. 25 to 2,350 employees of its
 Chino, Tyrone and Sierrita facilities.  Phelps Dodge anticipates the jobs of
 some employees at these operations will be impacted as the shared services
 become fully operational.
     For additional news about Phelps Dodge Corporation, refer to the first
 quarter 2001 earnings news release issued today.
 
     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.
 
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SOURCE Phelps Dodge Corporation
    PHOENIX, April 24 /PRNewswire Interactive News Release/ -- Phelps Dodge
 Corporation (NYSE:   PD) today announced it is implementing a plan to improve
 operating income by $30 million in 2001, $100 million in 2002, and
 $150 million annually beginning in 2003.  The operating income improvements
 will be achieved primarily through a restructuring of its professional,
 administrative and operations support functions.
     Phelps Dodge will transition to shared service models to provide
 consistent and more efficient delivery of human resources, information
 systems, accounting and finance, legal, engineering, environmental, training
 and other professional services to its operating units.  The redesign and
 consolidation of some functions, as well as business process streamlining,
 program reductions and the elimination of 500 positions, will occur during the
 shift to shared services.
     Phelps Dodge Chairman, President and CEO J. Steven Whisler said: "Our
 financial results have been negatively impacted by energy-related costs and
 general economic conditions.  We announced in March a series of actions to
 help address those issues, and this restructuring program will further assist
 us.
     "Through the new structure we are creating, we expect to deliver even
 higher quality, professional services and operations support.  While these
 changes will result in more cost-effective management, the non-financial gains
 also will be significant.  We will transform our delivery of professional
 services and operations support using a shared service approach to create
 common processes within critical business functions.  The company will benefit
 as we eliminate the variability in cost, quality, efficiency and service.
     "We remain optimistic that strong copper market fundamentals will prevail.
 As the copper price improves and we quickly capture operating income
 improvements, our shareholders will benefit from the leverage inherent in our
 copper production portfolio."
     Employees at Phelps Dodge Mining Company operations and corporate and
 administrative offices throughout North and South America will be affected by
 restructuring-related job reductions.  The elimination of these positions is
 unrelated to the March 26 renewal of the Worker Adjustment and Retraining
 Notification (WARN) Act notices announced on Jan. 25 to 2,350 employees of its
 Chino, Tyrone and Sierrita facilities.  Phelps Dodge anticipates the jobs of
 some employees at these operations will be impacted as the shared services
 become fully operational.
     For additional news about Phelps Dodge Corporation, refer to the first
 quarter 2001 earnings news release issued today.
 
     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.
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X77380144
 
 SOURCE  Phelps Dodge Corporation