For a clear assessment of the company’s performance for the period and comparisons with last year’s figures, it is necessary to separate extraordinary costs, such as those resulting from the anti-trust compensation, staff retention payments and restructuring charges.
For the first nine months of the year, the company reported total revenues of $225.2m compared to $254.7m for the same period in 2000. Net losses for the comparable periods were $41.3m for 2001 and $183.2m for 2000. The heaviest costs contributing to the losses have switched from the $188.5m anti-trust compensation set aside for the first nine months of 2000 to staff retention and restructuring costs of $14m in 2001. Excluding those, Sotheby’s are likely to have made a small profit in the third quarter of 2000 compared to a loss in 2001.
The company point out that the third quarter is historically a period of minimal sales activity, with a loss for the period generally expected even without the extraordinary costs they have faced over the past two years. But chief executive William Ruprecht said that the figures also reflected falling revenues from sales generally in the market. He focused on the company’s success in reducing costs and estimated that the net savings would top $50m by the end of the year.
In an increasingly challenging and competitive market, Mr Ruprecht said Sotheby’s supported “responsible use of guarantees” and would not take speculative risks such as those reported in the press concerning a rival auction house – a clear reference to the widely rumoured $180m guarantee signed by Phillips to secure the Smooke Collection.
SOTHEBY’S RESULTS
Third quarter - Ended Sept 30
Total revenues $38.4m ($42.5m)
Net income/loss -$33m (-$184m)
Extraordinary costs relating to staff
retention, restructuring and anti-trust
expenditure $14m ($184.7m)
First 9 months Ended Sept 30
Total revenues $225.2m ($254.7m)
Net income/loss -$41m (-$183m)
Extraordinary costs
relating to staff retention, restructuring $24m ($188.5m)
* Figures in brackets are results for the same period last year
Sotheby’s results point to market fall says Ruprecht
SOTHEBY’S Holdings Inc, the auction house’s parent company, have announced third quarter revenues for 2001 of $38.4m and a net loss for the period of $33m.
