Sotheby's Reports 4th Quarter Loss

Forbes and the Associated Press are reporting that Sotheby's has posted an $8.5 million loss, or 13 cents per share loss for the 4th quarter. Last year, the fourth quarter was strong for Sotheby's with $102.4 million in earnings and $1.55 per share. Much of the blame for the 4th quarter loss are lot guarantees and the turbulent economy.

Most of the economic issues for many business started in the 4th quarter of 2008, although there were signs of problems early on. For the year, earnings at Sotheby's totaled $28.3 million, or 43 cents per share, compared to $213.1 million, or $3.25 per share for 2007. 2008 revenue dropped from $917.7 million in 2007 to $691.6 million in 2008. As can be see from past earnings , the 4th quarter, because of the large moder, impressionist and contemporary sales, is an important and typicall a strong quarter for the international auction house.

The report states For the full fiscal year, earnings fell 87 percent to $28.3 million, or 43 cents per share, from $213.1 million, or $3.25 per share, a year ago. Full-year revenue dropped 25 percent to $691.6 million, from $917.7 million in 2007.

In 2009, Sotheby's expects to book about $9 million in additional restructuring charges. When it is completed in the first quarter of 2010, Sotheby's expects the plan to achieve annual cost savings of roughly $21 million for costs related to salaries and facilities.

In combination with other cost-cutting efforts, Sotheby's expects to save about $100 million in 2009 compared with its 2008 results.

To read the Forbes posting click HERE.