The De Beers group faced a decline of 7% in its half yearly sales of 2007 to $3.402 billion. Its net earnings were lower by 33% to $350 million on a year-on-year basis, although production increased by 2% to 25.3 million carats from 24.7 million carats in the same period of 2006 and underlying earnings increased by 5% to $324 million.
The decline in sales was according to De Beers, the result of reduced supply to the Diamond Trading Company (DTC) and the price correction in the rough diamond market in the second half of 2006. It also pointed out that the availability of roughs would be lesser than before, even though the demand for rough would increase in the second half of 2007 as compared to the first half.
De Beers would continue to purchase goods from Alrosa, and are in the process of analysing the judgment, which had restrained its’ rough diamond trade agreement with Alrosa.
Be the first to comment