According to AFNS, Sotheby's auction house reported a 58% decline in its first quarter revenue to $54.4 million due to a 71% free-fall in net auction sales. Sotheby's net loss for the first quarter plummeted by 178% to $34.5 million.

Losses are typical of the first and third quarters due to the seasonal nature of the art auction market.



Bill Ruprecht, President and CEO of Sotheby's, noted: "Sotheby's first-quarter results demonstrate an aggressive response to the ongoing global uncertainty, with costs down 25% and margins up 41%. The dynamics of the business are shifting dramatically, positioning us for strong future earnings power when the market rebounds, with more limited downside."



In response to the economic snafu, Sotheby's stated that it has introduced streamlining measures, including laying off a fifth of its staff, a step which it estimates will save the auction house more than $160 million this year.



Meanwhile, yesterday at the Sotheby’s Magnificent Jewels sale in Geneva, a rare fancy vivid blue diamond produced from the Cullinan diamond mine sold for $9,488,754 million or $1,349,752 per carat, breaking the previous world record price per carat ever achieved for any gemstone at auction.