KGHM Raises 2010 Profit Forecast 14% as Copper Climbs
KGHM Polska Miedz SA, Poland’s sole copper producer, raised its 2010 profit forecast for the second time this year after the price of the metal advanced and the zloty appreciated against the dollar.
The state-controlled producer, whose shares have turned in the best performance in Warsaw’s WIG20 Index this year, increased its net income target by 14 percent to 4.46 billion zloty ($1.5 billion) and raised its prediction for sales by 7.4 percent to 15.5 billion zloty, according to a regulatory statement today.
That compares with the 4.4 billion-zloty average estimate for the company’s profit in a Bloomberg survey of 12 analysts.
KGHM increased its forecast for the average 2010 copper price 12 percent from its September revision, to $7,475 per ton, and its prediction of the average zloty rate against the dollar by 2.8 percent, to 3.015.
KGHM advanced 1.4 percent to 146.9 zloty at 2:49 p.m. in Warsaw, heading for the highest close since its shares started trading in 1997. The benchmark WIG20 Index fell 0.1 percent, bringing its gain for the year to 13 percent.
Copper for delivery in three months was little changed at $8,730 a metric ton on the London Metal Exchange today, while the zloty traded at 3.02 against the dollar.
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