Harry Winston’s net profits high by 148%

Harry Winston Diamond Corp. has earned a 148 percent rise in net profits, which amounted to $49.9 million in the second quarter ending July 31, 2008. In the same quarter of 2007, its net profits valued at $20.1 million. Sales also seemed to increase in the Q2 period of 2008, scaling up by 7 percent to $186.1 million, within which rough diamond sales contributed $105.0 million, staying flat year-on-year, and retail segment sales were of $81.1 million (19 percent increase).

The company’s international portfolio has seen a strong yield from countries in Asia, Europe and the Middle East, although the US and Japanese markets continue to display weak trading opportunities. The increase in market base to countries other than US delivered strong pricing for rough diamond sales, against the lowered production from the company’s Diavik mines, which could not match the anticipated low output. The Diavik diamond mine produced 2.5 million carats in the second quarter, a decrease of 23 percent. Harry Winston’s 40 percent share of the diamond output in the three months amounted to 1.009 million carats, compared with 1.317 million carats last year.

Besides the fall in output, the company is positive at the strong revenue results it has generated in Q2 and believes this to the outcome of foreign exchange gain and improved operating performance in the mining and retail segments.