Poland's KGHM posts Q3 net rise, but misses market forecasts

Thu Nov 13, 2014 12:20pm EST
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WARSAW Nov 13 (Reuters) - A weaker zloty currency and higher copper sales helped Europe's No.2 copper producer KGHM post a 21-percent jump in its third-quarter net profit, though the profit growth was slightly below market forecasts, it said on Thursday.

The Polish state-run miner booked a standalone net profit of 629 million zlotys ($185.4 million), compared to 649 million seen by analysts. A weaker zloty currency helped outweigh the effect of the fall in dollar-denominated copper prices.

KGHM's sales fell by 1.3 percent year-on-year to 4.116 billion zlotys in the third quarter, beating market expectations of 4.103 billion zlotys.

The figures represent KGHM's unconsolidated results, generated only by the parent company, without factoring in foreign subsidiaries. The unconsolidated results are the basis for dividend payouts.

To date, the foreign units have not contributed significantly to profits. This will change in the fourth quarter because KGHM's biggest overseas asset, the Sierra Gorda mine in Chile, made its first copper shipment last month. (1 US dollar = 3.3932 Polish zloty) (Reporting by Adrian Krajewski)