LKI Reports Fourth Quarter Profit Dip


August 18, 2005

LKI Reports Fourth Quarter Profit Dip

Lazare Kaplan International said its fourth-quarter profit fell 50% from last year despite higher sales. The company cited a rise in sales costs and other expenses.

Although revenue increased to $129.9 million from $64.5 million in the fourth quarter of fiscal 2004, costs of sales more than doubled to $120.9 million from $57.2 million in the same period last year. Selling, general and administrative costs rose 31% over the fourth quarter of last year. Net income fell to $582,000 from $1.2 million last year.

For the full year, however, LKI reported a profit increase and sales rose 79% to $421.4 million. LKI said the increased revenue is die to higher sales of rough and polished diamonds.



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