Phelps Dodge Reports 1st Quarter Net Income

Phelps Dodge Corp. today reported consolidated net income of $333.8 million, or $1.64 per share, for the 2006 1st quarter; which was negatively impacted by an after-tax charge of $298.4 million, or $1.46 per share, for mark-to-market accounting adjustments on 2006 & 2007 copper collars & copper put options that do not qualify for hedge accounting. Net income also included after-tax, net special charges totaling $44.9 million, or 22 cents per share, for the 2006 first quarter. By comparison, the company reported net income of $386.7 million, or $1.92 per share, in the 2005 first quarter.