The Phoenix-based mining giant cut production and delivery costs by 40 percent over the past three months, generating gains that more than offset a quarterly decline in revenue.

Sales fell 10 percent to $4.14 billion, down from $4.62 billion in the prior-year period.

Still, quarterly earnings jumped 77 percent to $925 million, or $2.07 per share, compared with $523 million, or $1.31 per share during the same period last year.

That easily beat analyst expectations of $1.34 per share, according to a poll by Thomson Reuters.

Richard Adkerson, president and CEO, said Freeport is prepared to ramp up production, but that demand remains weak throughout the West.

Copper sales in North America fell 16 percent because of a severe slowdown in the housing and consumer electronics sectors. The company expects these conditions to steadily wear on copper sales for this year and next. Freeport-McMoRan predicted a 14 percent decline in 2009 copper sales to 1.2 billion pounds, and another 17 percent drop in 2010 sales to about 1 billion pounds.

Miners like Freeport-McMoRan are increasingly relying on China for sales. China is spending billions on infrastructure projects such as roads and new buildings. The country is flush with cash, meaning it was also able to stockpile copper while prices were cheap.

Freeport-McMoRan benefitted from rising gold prices as well because investors anxious about the stock market buy the precious metal as a safe-haven investment.

Freeport-McMoRan Copper & Gold Inc. is the world's largest publicly traded copper company. Its shares rose 64 cents in premarket trading to $79.22.

A service of YellowBrix, Inc.