* De Beers says 2011 EBITDA up 21 pct at $1.7 bln
* Diamond Trading Company sales up 27 pct
* DTC prices up 29 percent over the year, broader market up
11-13 pct
By Clara Ferreira-Marques
CAPE TOWN, Feb 10 (Reuters) – Diamond producer De
Beers warned it expected to feel the impact of uncertain markets
for months to come after investors and buyers took cover in the
second half, but 2011 profits rose by more than a fifth thanks
to a bumper start to the year.
De Beers, which vies with Russia’s Alrosa for the title of
the world’s largest diamond producer, said demand for the gems
would continue to grow in 2012 thanks to Chinese and U.S.
consumers, though at a lower pace after a bumper 2011, with many
of its own rough diamond buyers still cautious.
“I don’t believe we will see a major crash, but there is
certainly a lot of uncertainty,” said Chief Executive Philippe
Mellier, a mechanical engineer who took the reins at De Beers
last year after a lengthy search by the company to fill the top
job.
“On the other hand, all luxury goods appear to be holding
very well, and as a result the luxury goods companies are
showing there is still strong demand… This is very positive
for the diamond industry, which is positioned at the very top
end of luxury goods.”
LVMH, the world’s biggest luxury goods group,
earlier this month shrugged off concerns over the global economy
with a forecast-beating rise in profit and a dividend hike.
Continued…
