UPDATE 1-Freeport 2nd-quarter profit down on metal prices, costs
July 23 (Reuters) - Freeport-McMoRan Copper & Gold Inc reported a 32 percent drop in second-quarter profit on Tuesday, reflecting weak metal prices and higher costs, and said it will reduce spending through 2014, given the uncertain economic environment.
The world's No. 1 publicly listed copper producer also cut its full-year outlook for copper and gold sales after production was halted for nearly two months at its Grasberg complex in Indonesia following a fatal training tunnel collapse.
Freeport now expects to sell 4.1 billion pounds of copper, down 5 percent from 4.3 billion pounds, and 1.1 million ounces of gold, down 21 percent from 1.4 million ounces.
The Arizona-based miner, which closed a $19 billion takeover of two U.S. energy companies in the quarter, said it is clamping down on spending and has cut some $1.9 billion in planned capital expenditures and other costs through 2014.
The company also plans to divest non-core assets and reduce costs further.
Freeport reported net income of $482 million, or 49 cents a share, down from $710 million, or 74 cents a share, a year earlier.
Revenue fell 4 percent to $4.3 billion as its copper unit cash costs rose 24 percent to $1.85 per pound and the realized copper price fell 10 percent to $3.17.
Copper sales were up 3 percent to 951 million pounds, while gold sales slid 35 percent to 173,000 ounces, and the average realized gold price fell 17 percent to $1,322 an ounce.
The stock rose 1.8 percent to $29.68 in U.S. premarketing trading.
Freeport closed its takeover of Plains Exploration & Production Co on May 31 and McMoRan Exploration Co on June 3.