KGHM posts bumper Q4 and full-year profit

KGHM on Friday posted an unexpected fourth quarter core net profit, reaping the benefits of its well-managed hedging strategy, but questions remain over operating profitability and provisions. KGHM, the world's seventh largest copper producer and number two by silver output, turned a zl. 48 million net profit in October-December, against analyst expectations of a zl. 42 million unconsolidated net loss. The company's net profit soared to zl. 254 million for 2002 against a forecast zl. 142 million after a zl. 281 million loss in 2001, when the labour-intensive firm created large restructuring provisions. "This result is a great success ... (given that) copper prices have not been lower for 40 years and the strength of the zloty," KGHM Chief Financial Officer Anrzej Szczepek said. KGHM said the net profit was primarily based on financial income, which stood at zl. 244 million in the fourth quarter versus a zl. 44 million loss in the same period of last year. (Reuters) A.Z.