WARSAW, May 8 (Reuters) - Europe's No.2 copper producer, Poland's KGHM, disappointed with a 2-percent fall in its first-quarter net profit, as a higher zloty currency failed to outweigh the effect of lower copper prices, it said on Friday.
The state-controlled KGHM, also the world's largest silver miner, showed a bottom line of 497 million zlotys ($138.1 million), while analysts had expected a 7 percent rise to 544 million
Sales also fell, by almost 1 percent, to 3.767 billion zlotys. The market expected a 2 percent rise to 3.893 billion.
The figures represent the miner's unconsolidated results, generated only by the parent company. Those results are the basis for its dividend payouts.
They do not factor in foreign subsidiaries. These do not contribute significantly to profits, as KGHM's biggest overseas asset, the Sierra Gorda mine in Chile, is still in ramp-up mode and made its first copper shipment only last year. ($1 = 3.5995 zlotys) (Reporting by Adrian Krajewski; Editing by Christian Lowe)