KGHM results drop on copper prices

Copper giant, KGHM Q3 net profit results dropped 37.5 percent due to the effects of tumbling copper prices. The company's net profit fell to zł.718 million compared to zł.1.149 billion just a year ago. Meanwhile, revenue dropped by a fifth to zł.2.72 billion versus zł.3.410 billion a year ago.

However, analyst believe that the weaker złoty helped cushion the effects of dropping copper prices, as the results could have been worse. "Profit on currency differences helped the company, especially since it had receivables in foreign currency," Paweł Puchalski, analyst at DM BZ WBK told Reuters.

Even in the current market, KGHM maintains its 2008 guidance stating that it expects a new profit of zł.2.9 billion on sales of zł.11.2 billion, due to the weakening currency against the dollar, which will help offset the drop in metal's value.

Sources: Reuters, Puls Biznesu