LKI Q4 Sales Double, But Profits Halve

U.S. diamond firm Lazare Kaplan International Inc has announced a doubling of sales in the fourth quarter from a year earlier although net profits halved. The DTC Sightholder reported fourth quarter net sales were $129.9 million, a 101 percent rise on a year earlier.

Net income for the quarter was $600,000 compared with $1.2 million a year earlier.

For the fiscal year, sales jumped 79 percent to $421.4 million, while net profits were $5.2 million compared with $2.4 million in the previous fiscal year.

LKI said the increase in net sales for the fourth fiscal quarter and fiscal year 2005 reflected increased sales of both rough and polished diamonds.

Polished diamond gross margin for the fourth quarter and fiscal year was 15.9 percent and 16.2 percent, respectively, compared to 15.3 percent for both the fourth quarter and fiscal year ended May 31, 2004.

Rough diamond gross margin for the fourth quarter and fiscal year ended May 31, 2005, was 2.3 percent and 3.5 percent, compared to 5.5 percent and 4.6 percent for the same periods in the prior year.