Sotheby's 2011 Results

Another outstanding year for Sotheby's, the second best of its 268 history. Note the private sales division with over $800 million is sales, a record for Sotheby's.

Some highlights

• Full Year Revenues Increase 7% to $831.8 million

•  Full Year Net Income Improves 7% to $171.4 million 

• Full Year Private Sales Achieve Record $814.6 million 

Sothebys reports on its 2011 financial results

In 2011, Sotheby’s generated the best financial results in its 268-year history, apart from its record year in 2007.  Sotheby’s strong financial performance was driven by a $57.5 million, or 7%, increase in revenues attributable to growth in both auction and private sale commission revenues. Offsetting the growth in revenues was a higher level of operating expenses due in part to increased staff levels and their associated compensation costs, a higher level of direct costs of services consistent with the volume and composition of auction sales and the cost of investments in Sotheby’s strategic initiatives, principally related to the growth of its business in China and enhancing its information technology and online offerings.

Full year results were favorably impacted by a tax benefit of $13.6 million, or $0.20 per share, recognized in 2011 associated with the reversal of a valuation allowance against certain of Sotheby's deferred tax assets, and a pre-tax $7.6 million decrease in net interest expense.
Including these factors, net income for 2011 is $171.4 million, a $10.5 million, or 7%, increase from the prior year; diluted earnings per share is $2.46, a $0.12, or 5%, increase from 2010.Year to Date 2012 Sales

In January 2012, in New York, Sotheby's Old Masters Paintings sale totaled $62.1 million, above the pre-sale low estimate of $60.7 million.  Highlighting the sale were Canaletto's View of the Churches of the Redentore and San Giacomo from the Estate of Lady Forte that sold for $5.7 million (pre-sale estimate of $5/7 million) and Lucas Cranach the Elder's portrait Lucretia that brought $5.1 million (pre-sale estimate of $4/6 million).

Sotheby’s Impressionist and Modern Art sales in London earlier this month totaled $152.9 million, above the pre-sale low estimate of $150.3 million.  The evening sale was led by Claude Monet’s previously unseen painting of 1885 L’Entreé de Giverny en Hiver, which brought $13.1 million and, as was announced during the auction, Gustav Klimt’s rare 1901 landscape Seeufer mit Birken sold privately during the course of the sale for $9.0 million.  Surrealist paintings drew strong interest in the evening sale with fourteen Surrealist paintings bringing a combined total of $25.6 million, highlighted by Giorgio de Chirico's Ettore e Andromaca, which sold for $4.5 million.

Also in London earlier this month, Sotheby’s Contemporary Art sales brought $103.7 million, above the pre-sale high estimate of $103.0 million.  Highlighting the evening sale was Gerhard Richter’s Abstraktes Bild (numbered 768-4), which brought $7.6 million, exceeding the pre-sale estimate of $4.7/6.3 million.