Global recovery gives De Beers back its sparkle
Saturday 12 February 2011
Diamond giant De Beers has recovered its sparkle, bouncing back to profitability last year thanks to rising prices and roaring demand from emerging economies.
The world's biggest diamond producer reported annual profits of $598m (£374m) in 2010 yesterday, compared with a $220m loss in 2009, on revenues up by 53 per cent at $5.9bn.
Sales of rough diamonds shot up by 57 per cent to $5.1bn as market prices rose by 27 per cent. The US is still the biggest market and demand rose by 7 per cent last year, De Beers said. But the market is growing much faster in China and India, climbing by 25 per cent and 31 per cent respectively, the company said.
The improving market is expected to continue over 2011. "After a better than expected Christmas retail season, the US market is expected to continue its recovery and the exceptional growth seen in China and India is expected to be sustained," the company said. "For the foreseeable future, continued recovery in global economic outlook and strong retail confidence are expected to underpin positive growth in consumer demand for diamond jewellery in 2011."
De Beers is 45 per cent-owned by Anglo American – netting the miner $302m in underlying profit from its investment last year. Another 40 per cent is held by the Oppenheimer family. Its chairman Nicky Oppenheimer is the grandson of Ernest Oppenheimer, who took over in 1927.
- 1 To help fuel their propaganda machine against the poor, our government has now decided to redefine the word 'welfare'
- 2 Tower Bridge glass walkway 'smashed' by night-time visitor dropping bottle of beer
- 3 Anti-gay hate preacher accidentally tweets 4,000 followers cartoon clip of him 'confessing' to be a 'homosexual sodomite'
- 4 Woman opens professional cuddling shop – gets 10,000 customers in first week
- 5 Grayson Perry: London needs affordable housing because 'rich people don't create culture'
Rochester by-election: Ukip gains second MP as Tory defector Mark Reckless holds seat
'Beast of Bolsover' Dennis Skinner takes Ukip MP Mark Reckless to task moments after he is sworn in
Rochester by-election: Labour MP Emily Thornberry resigns after posting white van and England flags tweet
France 'blocks' Russian sailors from boarding a warship
Rochester aftermath: Sacking of Emily Thornberry will make work of Labour MPs '10 times harder'
Revealed: How the world gets rich – from privatising British public services
iJobs Money & Business
Voluntary Only - Expenses Reimbursed: Reach Volunteering: Age Concern Slough a...
Voluntary Only - Expenses Reimbursed: Reach Volunteering: Crossroads Care is s...
£20000 - £25000 per annum + OTE £35,000: SThree: We consistently strive to be ...
£50000 - £90000 per annum + benefits: Ampersand Consulting LLP: Markit EDM (CA...