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Sotheby’s 2015 Revenue Climbs but Profit Slumps
Feb 28, 2016 6:11 AM
By Rapaport News
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RAPAPORT... Sotheby’s reported revenue increased 2.5 percent to $961.5
million in 2015. However, profit dived 63 percent to $43.7 million because of a
number of charges recorded in the year including a $65.7 million non-cash
income tax charge and a $23.6 million after-tax charge related to the
auctioneer’s voluntary separation incentive programs late in the year. Both
charges were recognized in the fourth quarter of 2015.
Diluted
earnings per share fell from $1.68 to $0.63, according to a statement
February 26.
The company
offered voluntary separation incentive programs to staff in the fourth quarter,
which were accepted by about 5 percent of its 1,600-person global work force,
according to a Securities and Exchange Commission filing December 14.
“After a year
of transition, we have a strong team with a clear mandate to build a more
valuable business for shareholders and a more responsive one for new and
existing clients,” said Tad Smith, Sotheby’s president and chief executive
officer.
“We will
likely have one or more difficult quarters as we ride through the current
cycle, but we are being careful on guarantees and capital commitments, watching
our liquidity carefully, continuing to invest in the people and capabilities
that will drive our future success, and taking the opportunity with our excess
cash to repurchase shares.”
Sotheby’s sold
$571.4 million worth of jewelry in 2015, below a record of $602.5 million
set the previous year, it said. In November it sold the
12.03-carat Blue Moon diamond for a world-record $48.5 million.
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Tags:
Auctions, Blue Moon, Rapaport News, results, sales, Sotheby's
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