Aug. 23 (Bloomberg) -- New World Resources Plc jumped the most in almost a month after second-quarter profit at the biggest Czech producer of coking coal shrank less than analysts expected.
The stock climbed 2.1 percent, its steepest gain since July 24, to 97 koruna by the close in Prague, making it the second-best performer in the 14-member PX equity index today.
Net income for April to June contracted 66 percent from a year earlier to 28.3 million euros ($35.5 million) as falling demand from steelmakers lowered prices of the commodity, the company said today. That compares with the 24.8 million-euro mean estimate of eight analysts surveyed by Bloomberg. The costs of material, energy, services and personnel shrank 7.4 percent and financial expenses fell 39 percent, according to the earnings statement.
“Figures for the second quarter are significantly better than expected,” Josef Nemy, an analyst at Komercni Banka AS in Prague, wrote in a report to clients today. “Lower-than-expected operating and financial costs will have a positive impact on our full-year forecasts.”
Basic resources stocks were among the biggest gainers in Europe as commodities advanced on speculation central banks in the U.S. and China will take steps to stimulate growth in the world’s two largest economies.
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