Alrosa said that it has seen a decline in its revenues during the first quarter of 2008, due to the economic recession in US. Net profit declined by 38 percent year-on-year, amounting to 1.156 billion rubles ($49 million). Its earnings decreased by nearly 75 percent compared to the fourth quarter of 2007. In the entire year 2007, Alrosa produced diamonds worth $2.37 billion, with diamonds sales worth $2.79 billion. %% The decreased demand for rough diamonds at the beginning of a year and higher production costs propelled by inflation in Q1 of 2008 were also reasons for Alrosa’s sales to dip in Q1 2008.