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DeBeers Earnings Fall 14%.
De Beers Group reported that its underlying earnings fell 14 percent to $308 million during the first half of fiscal 2006. De Beers now uses underlying earnings rather than headline earnings to provide a better measure of performance it disclosed in its financial statement. Total revenues for De Beers held flat at $3.92 billion for the first six months of 2006 compared with January through June 2005.
During an industry presentation announcing first half results, company chairman, Nicky Oppenheimer, said that the results were indicative of difficult trading conditions. Higher interest rates, higher gold and platinum prices, reduced margins across the distribution pipeline, and the increasing need to manage polished inventory levels all weighed on the rough trading markets.
De Beers sales and marketing arm, the Diamond Trading Company (DTC,) posted a 1 percent increase in sales to $3.25 billion for the first half of 2006.
