Sotheby's (BID) fourth-quarter profit fell 7.5% as the auction
house posted $15 million in debt-extinguishment costs that masked
improved revenue.
The auctioneer has seen its bottom line alternate between black
and red for a year and a half, as revenue mostly declined in the
double-digits, partially due to weaker auction revenue from
Asia.
In November, Sotheby's sold a Mark Rothko abstract--"No. 1
(Royal Red & Blue)"--for $75 million, capping a
contemporary-art auction whose total of $375 million surpassed any
in its company history, The Wall Street Journal reported. However,
in the latest period, auction sales fell 1.8%.
The company last month said Chief Executive and President
William F. Ruprecht will take on the added title of chairman and
added that Michael I. Sovern will remain a member of the board
after 13 years as the auction house's chairman.
For the fourth quarter, Sotheby's reported a profit of $66.1
million, or 96 cents a share, down from $71.5 million, or $1.04 a
share, a year earlier.
Revenue improved 2.4% to $291.1 million, while expenses edged
down 0.3%. The year-earlier period had no debt-extinguishment
costs.
Analysts polled by Thomson Reuters projected a per-share profit
of $1.09 on revenue of $279 million.
Sotheby's has said its second and fourth quarters are generally
stronger than its first and third, due to the seasonality of the
art-auction market.
Shares slipped four cents to $38.19 after hours Thursday.
Through the close, the stock is up 32% over the past three
months.
Write to Debbie Cai at debbie.cai@dowjones.com
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