Freeport-McMoRan Is Bullish, BHP Is Cautious
Richard Adkerson, CEO of Freeport-McMoRan, is positive about the outlook for his business while BHP is cautious and trying to read the economic tea leaves in China.
“We remain positive about the outlook for our business based on the fundamentals of global supply and demand. We anticipate generating strong cash flows, which would enable us to invest in future growth and return cash to shareholders,” said Adkerson. The company was announcing second quarter results of 3.9 billion, up by 4.0% from the second quarter of 2009.
BHP also had a good news to report while releasing its year end production report. Iron ore productions was up 16% from the previous year; however, the firm tempers the results.
"BHP Billiton continues to be cautious on the short term outlook for the global economy. Uncertainty surrounds the near term prospects for growth in the developed world as governments adjust fiscal policies following a period of significant stimulus and subsequent increase in sovereign debt levels. Within China, measures introduced to
reduce growth to more sustainable levels means volatiliy in commodity end-demand is likely to persist. BHP Billiton sees these measures as a normal continuation of China’s economic management policies," the company writes.