"I am pleased with the record quarterly and year-to-date sales and strong earnings from operations. Harry Winston Diamond Corporation's 79% increase in operational results underscores the importance of our unique marketing position as a pure diamond company.
As the diamond production from the Diavik Mine increases, we are poised to take advantage of the growing global demand against a backdrop of diminishing world diamond supply," said Robert Gannicott, Chairman and Chief Executive Officer.
"In addition, our Harry Winston retail business, with an expanding worldwide network of salons, continues to focus on long-term growth and profits."
Thomas J. O'Neill, President of Harry Winston Diamond Corporation and Chief Executive Officer of Harry Winston Inc, added, "During the quarter, we continued to focus on a calibrated growth strategy and to strengthen our core business.
Although we faced a more challenging U.S. environment, we were pleased with our momentum in Asia and Europe for Harry Winston jewelry and watches. We continue to see an increasing demand for our designed and hand-crafted diamond jewelryand watches in our salons and in our select wholesale watch network worldwide."
Alice Murphy, Chief Financial Officer, said "Although our foreign exchange loss is substantially non-cash, the strengthening of the Canadian dollar throughout the year has dramatically impacted our year-to-date net earnings and entirely masked our strong third quarter operational results.
Currently, the foreign exchange rate is close to parity which would support a currency gain in the fourth quarter should this rate continue to January 31, 2008 year end."
Mining Segment Results:
Mining revenues, representing production and sales of rough diamonds, increased 35% or $32 million, to $122.7 million in the third quarter. The Company held three primary rough diamond sales in the third quarter and two primary sales in the comparable quarter of the prior year.
In addition, as the Company continues to expand its rough diamond sales network, sales are now conducted throughout the quarter in selling offices in Belgium, Israel and India.
Mining earnings from operations were $70.0 million, representing a 72% increase, or $29.4 million, from the prior year comparable quarter.
Harry Winston Diamond Corporation
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