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Polish KGHM Raises 2009 Profit Forecast to $850 mln
Feb 22,2010 09:15CST
industry news

WARSAW, Feb. 22 -- Europe's No.2 copper producer KGHM (KGHM.WA: Quote) raised its 2009 earnings forecast to 2.5 billion zlotys ($850 million) on higher than expected copper prices, the miner said on Thursday.

KGHM also said last year's revenues reached 11 billion zlotys ($3.7 billion), in a last-minute revision of guidance a few days ahead of full-year results.

"The full-year results are just a formality now," KBC analyst Robert Maj said. "The information is positive as it is higher than previous forecasts and higher than market expectations."

Copper prices CMCU3 traded on average at $5,164 per tonne last year compared with the $5,045 the firm's previous forecast was based on.

Additionally the bottom line was boosted by lower-than-expected impairment charges in KGHM's subsidiaries, the miner said.

"I expect the provisions were much lower than the 200 million zlotys signalled earlier," BZ WBK analyst Pawel Puchalski said.

The hike was the third upward revision in full-year guidance by KGHM. KGHM, whose stock has lost 11 percent this year after nearly quadrupling in value last year, will release 2009 earnings on Feb 26.

At 1501 GMT, KGHM shares gained 0.5 percent to 95.4 zlotys.

In 2008 KGHM's net profit reached 2.9 billion zlotys.


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