Sotheby’s Accomplishes Record Quarterly Profits

February 28th, 2008

Sotheby’s New York, via New York Post

Sotheby’s International announced, on Tuesday, that their profit margin has grown 46% in the last quarter. The anticipated quarterly estimate was $1.47 per share on $337.7 million in revenue. The resulting figure resounded at a record $345.8 million, which was a $32.1 million dollar increase in comparison to last year.

Sotheby’s annual report released [Fox Business]
Sotheby’s Fourth Quarter raises bar [Business Week]
Auction House Annual Report [Sotheby's International]
Auction House’s net income breaks record [United Media]
Sotheby’s full year results [Street Insider]

Sotheby’s 2007 final annual report listed four of the year’s five top lots, sold at auction, as part of their revenue; three of which were sold in the fourth quarter. The quarter ended December 31, 2007. Sotheby’s top lots were The Guennol Lioness for $57.2 million, Mark Rothko’s “White Center (Yellow Pink and Lavender)” for $72 million, Frances Bacon’s “Study from innocent x” for $52.7 million and Frances Bacon’s “Version of study for Bullfight #1″ for $46 million.

The auction house, listed under the New York Stock Exchange as a Symbol BID, earned a net income of $102.4 million, $1.55 per share. This is a great improvement to last year, which reported a mere $70.3 million, $1.09 per share. In a press conference, Chief Executive Officer of Sotheby’s, Bill Ruprecht stated that the auction house “strategically reduced lot volume by 42% on the low end.” Sotheby’s sold 41 lots above $10 million compared to 20 works in 2006.