Third quarter results for Harry Winston Diamond Corporation (TSX: T.HW, Stock Forum) came in Wednesday after market close, including an increase in net earnings.
The company reports consolidated net earnings of $71.9 million, or $1.17 per share for the third quarter compared to a net loss of $7.4 million, or 13 cents per share for the same quarter last year.
Consolidated sales were $148.6 million for the third quarter compared to $176.5 million for last year’s Q3.
"Current world economic conditions present unprecedented challenges. It is in such times that business fundamentals come to the fore. We own 40% of one of the world's richest, and highest operating margin diamond mines. It would remain profitable through diamond pricing that would force the closure of the majority of the world's diamond production. We also own 100% of one of the world's most prestigious luxury brands. We are confident that assets of this quality can carry us through the present turmoil" said Robert A. Gannicott, the company’s chairman and chief executive officer.
Harry Winston reports that earnings from operations for the mining segment decreased 33% to $47 million compared to the comparable quarter last year. Rough diamond production Q3 was down 26% to 0.9 million carats produced versus 1.25 million for last year’s third quarter, while mining sales were down 26% to $90.7 million. The company’s retail segment recorded an 8% increase in sales to $57.9 million.
Shares of Harry Winston surged 40.7% to close at $5.98 Wednesday, and climbed 12.7% in early trading on Thursday.
Commenting on the results, puma1 said: “consensous eps was in the 36 to 51 cent range for Q3 - they reported 37 cents after you take out the FX 80 cent impact. below target but it looks like the stock could now be in play[sic].”
GambitX commented: “I just fear the next few quarters from the sales division. With the economy tanking, I can't see them having decent sales numbers…[sic]”
