When Freeport McMoRan Copper & Gold's revenues fell by half within weeks in late 2008, it was do or die. To preserve liquidity, the company slashed its workforce and capital spending and eliminated its dividend. It still saw cash fall to less than $1 billion. Since then, the mining company has reinstated its dividend, now larger than it was prior to the financial crisis, rehired most of its workforce and grown its cash to nearly $5 billion. Freeport also ramped up operations idled during the downturn and set in motion a $6 billion investment plan to increase its copper production 25% over the next few years.
Kathleen Quirk, who was appointed CFO in 2003 and retained the position through the company's 2007 merger with Phelps Dodge, discusses how the financial crisis affected the company's approach to decision making.
T&R: Does the di
verse team of executives you organized to determine steps to maintain liquidity and future operational viability during the crisis remain active?
Complete your profile to continue reading and get FREE access to Treasury & Risk, part of your ALM digital membership.
Your access to unlimited Treasury & Risk content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Critical Treasury & Risk information including in-depth analysis of treasury and finance best practices, case studies with corporate innovators, informative newsletters, educational webcasts and videos, and resources from industry leaders.
- Exclusive discounts on ALM and Treasury & Risk events.
- Access to other award-winning ALM websites including PropertyCasualty360.com and Law.com.
*May exclude premium content
Already have an account? Sign In
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
