Boliden Shares Advance as Earnings Exceed Analyst Estimates
Boliden AB (BOL), Scandinavia’s only copper producer, climbed to the highest price in almost three months in Stockholm trading as earnings beat analyst estimates.
Boliden rose 0.4 percent to 91.35 kronor, the highest closing price since Aug. 3. The stock earlier jumped as much as 4.5 percent after the company reported third-quarter net income of 835 million kronor ($128 million), exceeding the 785 million- krona average estimate of 10 analysts surveyed by Bloomberg.
Copper companies including Freeport-McMoRan Copper & Gold Inc. have beat profit estimates following gains in the price of the metal used in pipes and wiring. Copper for three-month delivery on the London Metal Exchange averaged $8,992.91 a metric ton in the quarter, 24 percent higher than a year earlier as demand rose in Asia. Prices were 1.9 percent lower than the previous quarter as slowing economic growth curbed consumption.
“A number of European metal customers have implemented production cutbacks, but we have successfully compensated for the fall in the volume this entailed by sales to other customers,” Chief Executive Officer Lennart Evrell said in a statement, adding that declining metal prices are a “concern.”
Costs increased by 147 million kronor in the quarter from a year earlier, in part because of rising energy prices, Boliden said. Copper output fell 3 percent to 19,979 tons, while zinc production rose 4 percent to 73,877 tons, the Stockholm-based company said in the statement.
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