Anglo American Underlying Earnings Rise 5.3%

De Beers' majority owner Anglo American announced a 7.7 percent decline in total group revenue, which amounted to $35.674 billion. Group underlying earnings rose 5.3 percent to $5.761 billion.

Attributable operating profit from diamonds rose 5 percent to $484 million, 5 percent of Anglo American’s total operating profit from core operations. The rise was credited to higher earnings from joint ventures and a modest increase in the price of diamonds.

The mining giant reported that the outlook for diamonds this year is tempered by uncertainty over global economic growth, with economic conditions in the U.S. impacting consumer diamond jewelry sales through the first half of 2008, particularly at the lower end.

Conversely, strong demand from China, India and the Middle East is expected, sustaining pricing for larger and better quality diamonds.

Looking beyond 2008, De Beers is confident that demand should exceed new supply, an opportunity for future price growth.