TORONTO, June 6 Dominion Diamond Corp,
formerly known as Harry Winston Diamond Corp, posted a sharp
increase in first-quarter profit on the sale of its branded
retail business to Switzerland's Swatch Group.
Net profit attributable to shareholders was $500.2 million,
or $5.82 per share, in the quarter ended April 30, the company
said late Wednesday. The luxury group sale accounted for $497.6
million of that profit.
Excluding the sale and other one-time items, earnings were 3
cents a share, below analysts' average forecast of 9 cents,
according to Thomson Reuters I/B/E/S.
The company earned $11.6 million, or 14 cents a share, a
Sales rose 22 percent to $108.8 million with the addition of
rough diamonds from the Ekati mine in Canada's Northwest
Dominion struck a deal to buy Ekati from BHP Billiton
in November, betting that rising rough diamond
prices could extend the life of the mine. The deal closed on
The diamond miner said it was reviewing the Ekati mine plan
and operating budget. It foresees production of some 1 million
carats at the mine through the end of the calendar year.
Separately, in January the company agreed to sell its
branded luxury jewelry business to Switzerland's Swatch and
focus on mining diamonds. It changed its name to Dominion
The Toronto-based company also owns a 40 percent stake in
the Diavik diamond mine, also in the Northwest Territories,
which is operated by Rio Tinto.