Harry Winston Diamond Corporation just released very positive reports of their second quarter results for the period ending July 31, 2010.
According to reports, things are looking bright for the diamond mining and retailing company. The company posted profits that exceeded expectations with strong diamond sales in its diamond mining and diamond retail segments boosting their results.
Shares of Harry Winston Diamond are up more than 21% thanks to their consolidated sales increase of 62% from $94.8 million last year to $153.7 million this year. This increase resulted in earnings from operations of $28.9 million, compared with last year’s loss from operations of $3.9 million.
In addition, the Canadian diamond corporation’s rough diamond sales rose 89% from $46 million in the comparable quarter of 2009 to $86.8 million while their diamond retails sales rose a total of 37% to $66.9 million.
Harry Winston’s rough diamond production for this quarter has also increased. Their rough diamond production for the three months ended June 30, 2010 was 0.65 million carats, up 14% from diamond production in the second quarter of 2009 of 0.57 million carats. Production at that time was extraordinarily low; slowed in response to a sluggish
rough diamond market.
All of this has impacted their overall profit of $16.5 million -22 cents per share. This is a huge turnaround from their lost last year in the same quarter of $24.5 million- 32 cents per share.
With the future looking bright, Harry Winston Diamond Corporation closed a $220 million deal in August which will reinstate its 40% stake in the Diavik diamond mine in northern Canada. Harry Winston will essentially buy back the 9% interest in Diavik that it previously sold to Kinross Gold in an effort to boost its accounts in the wake of the economic crisis.
