Harry Winston Reports 4th-quarter Loss On Charge

NEW YORK (AP) — Canadian diamond miner and seller Harry Winston Diamond Corp. on Thursday reported a loss in fiscal fourth-quarter profit, hurt by a charge related to the decline in value of its retail operations amid a slowing economy.

The loss for the quarter ended Jan. 31 totaled $73 million, or $1.19 per share, compared with a profit of $90.4 million, or $1.54 per share last year.

However, results included several one-time items, including a $1.54 per-share charge for writing down goodwill relating to its retail operations and a 16 cent-per-share gain on an insurance settlement.

Foreign exchange boosted results by 96 cents per share.

Revenue fell 37 percent to $118.4 million from $188.2 million last year.

Mining sales fell 21 percent to $328.2 million due to lower rough diamond production and lower rough diamond prices. Retail sales rose 6 percent to $281 million.

Company Chief Executive Robert Gannicott called credit the "vascular system" of the diamond industry, and so when credit tightened last year it "shocked the diamond supply chain to a sudden standstill that persisted into this year."

For the year, profit fell 34 percent to $70.1 million, or $1.15 per share, from $106.4 million, or $1.81 per share, a year ago. Revenue fell 10 percent to $609.2 million from $679.3 million last year.