sell on news!Aber Diamond Q1 sales rise 18½% to US$141M; strong C$ knocks down net to $3M
Wed Jun 6, 9:26 AM
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TORONTO (CP) - Aber Diamond Corp. (TSX: ABZ.TO) said Wednesday its first-quarter sales rose 18½ per cent to US$141 million and operating profit grew 29 per cent to $36 million, but a future-tax hit caused by the strong Canadian dollar cut net income to $3 million, compared with $24 million a year ago.
The co-owner of the Diavik diamond mine in the Northwest Territories, which reports in U.S. dollars, said its profit in the three months ended April 30 was worth six cents per share, down from year-ago net income of $24 million, 41 cents per share.
Aber, which in addition to its 40 per cent ownership in Diavik owns the Harry Winston jewelry retailer, said its $141 million in first-quarter revenue was up from $119 million a year earlier.
Sales grew 19 per cent in the mining segment and 17 per cent in retail operations, but the bottom line was pulled down by a non-cash mark-to-market adjustment to future income taxes resulting from the six per cent appreciation of the Canadian dollar against the U.S. dollar during the quarter. This $13.6-million charge compared with a year-ago recovery of $10.4 million on future taxes.
"Operationally this has been one of our strongest quarters," stated chairman and CEO Robert Gannicott.
"The winter road resupply delivered the largest number of loads in its 25-year history. Diamond production set a new first-quarter high despite a seasonally cold winter."
Harry Winston, meanwhile, "continued its solid growth in sales as it delivers on its planned store openings around the world to serve the growing population of wealthy consumers."
Aber's share of Diavik, owned 60 per cent by owned by Rio Tinto, was 1.03 million carats in the first quarter, up from 715,000 as year earlier, and operating cost per carat declined to $24 from $30.