De Beers delivered a profitable set of full-year results for 2008. Total sales for the year to December 31 were up 1% on last year to $6.89bn (£4.82bn) and EBITDA rose 0.5% to $1.22bn (£853.5m).

In the first nine months of 2008, De Beers achieved record sales of natural rough diamonds. However, sales slowed significantly in the last quarter as declining demand hit sales in November and December, which were lower than expected.

De Beers group managing director Gareth Penny said: “Luxury products, including diamonds, are not immune from the effects of this dynamic in the short-term.”

Penny said that De Beers is expecting and preparing for smaller than normal Sights in response to declining retail demand for diamond jewellery. He said: “Extraordinary times call for extraordinary action and after posting a profitable set of results De Beers is focusing on running a sustainable business in 2009. We will reduce production levels in line with demand and we will continue to closely monitor demand and adjust accordingly.”

The group will also be keeping a close eye on production levels, costs and capital expenditure. Penny said: “It is clear that our attention must turn to the future to ensure that De Beers is positioned to face the global crisis with brave decisions and innovative solutions.”


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