|
RAPAPORT... Sotheby's reported that its fiscal year revenue dropped 8 percent year on year in 2012 to $768.5 million, attributing the decline to an 11 percent drop in auction commission revenue to $79.4 million that resulted from a 10 percent reduction in net auction sales. Profit plunged 37 percent to $108.3 million, or $1.57 per diluted share. Before the fiscal year ended, Sotheby's refinanced its long-term bonds to the year 2022, incurring a $15 million pre-tax bond redemption loss as a result. However, this long-term refinancing will reduce Sotheby's financing costs by approximately $5 million per year, beginning in 2014.
"Consolidated sales in 2012 were a robust $5.4 billion as healthy bidding continued around the world for great works of art," said Bill Ruprecht, the chairman of Sotheby's. "Our operating results reflect some significant successes, a stiff comparison to one of the best years in Sotheby's history a year ago, and a very competitive climate for high-end consignments. Overall, I remain confident in the marketplace." Earlier this year, Sotheby's announced that its jewelry auction total in 2012 reached a record $460.5 million. Revenue from its jewelry sales was propelled by the success of private collections, exceptional diamonds and gemstones and historical jewels with noble provenance. Sotheby’s jewelry auctions worldwide achieved an average of 84 percent sold by lot. Seventy-two lots sold for more than $1 million, with six surpassing the $5 million mark.
|