Diamond Company De Beer's profit grows 11.2%

13 Feb '06

2 min read

Diamond company De Beers reports financial results of year 2005.

Despite a class action payment of $250 million, De Beers earned profits of $554 million, up 11.2 per cent from $498 million the previous year.

Profits before the class action payment were a whopping $804 million, up $61.5 per cent.

Revenue, at $7.96 billion, was up 13 per cent. Earnings from diamond sales (net diamond account) were up 1.7 per cent to $1.19 billion.

Rough diamond production was up 4 per cent to 49 million carats, with Debswana alone accounting for a record 31.9 million carats.

The diamond operations margin was 14.9 per cent, down from 16.4 per cent the previous year.

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Gary Ralfe and Paddy Kell, after eight years of service as Managing Director and Finance Director respectively of De Beers, will be retiring at the end of February 2006.

Gary will assume a role as a non-executive Director on the DBsa Board.

They are grateful for their enormous contribution to the De Beers Group.

Gary will be succeeded by Gareth Penny and Paddy by Stuart Brown.

De Beers selects stones based on expertise in choosing exceptional fire, beyond the 4 C's, but ultimately, it is the diamond that chooses you."

De Beers

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