ABER DIAMOND CORPORATION announces its second quarter results for the period ended July 31, 2007.
"We are pleased with our strong results this quarter that have delivered a 24% increase in sales and a 27% increase in earnings from operations with both segments of our business contributing to the record results," said Robert Gannicott, Chairman and Chief Executive Officer of Aber Diamond Corporation.
"Rough diamond production increased 21% in the quarter as a result of grade enhancements from improvements to the diamond recovery process. In our Harry Winston business, the demand for premier jewelry and watches continued to grow in our new and existing salons worldwide."
Mr. Gannicott continued, "Our mining and retail businesses are strong and we believe we are well positioned for greater growth while retaining a focus on delivering shareholder value."
Thomas J. O'Neill, President of Aber and Chief Executive Officer of Harry Winston added, "Our 41% increase in sales from our worldwide retail portfolio of 15 salons and selective watch wholesale network, reinforces the strong global demand for the premier diamond jewelry and watches of Harry Winston. Our newest salon, in Beijing, opened during the quarter and our clients have responded well to our collections."
"We believe we are well positioned for the important upcoming holiday season. While we are focused on the near term, we continue to build for the future. We are on schedule to open three additional salons in the third quarter in key regions throughout the world including Hong Kong, Chicago and Nagoya, Japan and we look forward to introducing our new clients in these dynamic cities to our collections and our service."
"Record consolidated sales and strong margins were key operational drivers to our Q2 results," stated Alice Murphy, Chief Financial Officer of Aber Diamond Corporation. "Our consolidated gross margin of 52.8% for the quarter reflects continuing significant contributions from both our operating segments. Net earnings of $20.1 million for the quarter were negatively impacted by a $9.6 million non-cash foreign exchange charge while the comparable quarter last year included a $6.6 million tax recovery."
Returning Value to Shareholders:
Aber is pleased to declare a quarterly dividend payment of US$0.25 per share. Shareholders of record at the close of business on September 28, 2007, will be entitled to receive payment of this dividend on October 15, 2007.
