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Sotheby’s Announces 2008 Second Quarter And First Half Results
SOTHEBY’S ANNOUNCES 2008 SECOND QUARTER AND FIRST HALF RESULTS
- Second Quarter Revenues of $320.2 million and Operating Income of $150.9 million
- Second Quarter Net Income of $95.3 million and Diluted Earnings per Share of $1.46
- Sotheby’s Sells the World’s Most Expensive Contemporary Work at Auction, Francis Bacon’s Triptych, 1976, for a Record $86.3 million
August 5, 2008, New York — Sotheby’s (NYSE: BID) today announced results for the second quarter and first half ended June 30, 2008.
For the quarter ended June 30, 2008, the Company reported revenues of $320.2 million, a $19.3 million, or 6%, decrease over the prior second quarter, primarily due to the shift of our summer Contemporary sales in London from the second quarter of 2007 to the third quarter of 2008. Those sales brought auction commission revenues of $24 million in the second quarter of 2007 and will contribute approximately $26 million to auction commission revenues in the third quarter of 2008. Auction commission margin in the second quarter of 2008 was 15.1% which is much improved from the 13.6% auction commission margin in the first quarter of 2008 although not quite as high as prior year second quarter auction commission margin of 16.0%. Also impacting revenues in the second quarter of 2008 are unfavorable principal activities results for the period.
The Company’s net income for the second quarter of 2008 was $95.3 million, or $1.46 per diluted share compared to net income of $107.3 million, or $1.64, per diluted share for the prior period, a $12.0 million decline, largely due to the aforementioned calendar shift. This decline is partially offset by lower operating expenses, which totaled $169.3 million compared to $182.0 million in the prior period, a $12.8 million, or 7% improvement. Operating expenses include an $18.4 million one-time benefit ($11.7 million after-tax) recognized as a result of the reversal of the remaining liability related to the vendor’s commission discount certificates that expired in May 2008 and were issued by the Company in 2003 in conjunction with the settlement of antitrust related civil litigation. The reduction in operating expenses is also partially attributable to a decrease in incentive bonus accruals as a result of the lower profitability of the first half and is somewhat offset by increased direct costs, primarily due to higher consignment and sales levels in Hong Kong, as well as higher catalogue and sale promotion costs related to the May Impressionist and Contemporary Art sales in New York.
For the first six months of 2008, aggregate auction sales were $3.0 billion, a record for Sotheby’s, and revenues were $449.4 million, a $37.5 million, or 8% decline from the prior period due to the previously mentioned sales shift from the second quarter to the third quarter ($24 million revenue benefit in the first half of 2007) as well as lower auction commission margins and unfavorable principal activities results in the current period. Net income for the first half of 2008 was $82.9 million, a $48.7 million, or 37%, decline from the first half of 2007 largely due to the aforementioned shortfalls in auction and related revenues. Diluted earnings per share was $1.26 for the first half of 2008, a 38% decrease from the prior period.
“These results are the second best in our history, and are remarkable in the context of today’s global economic environment,” said Bill Ruprecht, President and Chief Executive Officer of Sotheby’s. “Our conservative approach to risk, the significant improvement in our auction commission margins in the second quarter and our focus on costs have all contributed to healthy profitability.
“Our ability to successfully raise $350 million in new capital in this climate - in an oversubscribed offering - now provides us with greater liquidity than we have ever enjoyed,” continued Mr. Ruprecht. “Sotheby’s was upgraded to investment grade by Standard & Poors in early June and we have retired our $100 million bond that was due in February 2009. Our company today is in an excellent position to be flexible and competitive and to continue our long tradition as innovators in our markets. Demand has remained very strong for great works of art, and the market has continued to be robust, recently illustrated by our excellent summer sales in London. Aggregate auction sales to date of $3.4 billion are up 14%.
“We are encouraged by a number of exciting events that are ahead in the autumn season. Notable among them is the landmark sale in London, “Beautiful Inside My Head Forever,” consisting of over 200 new and exciting works by renowned artist Damien Hirst, which is estimated in excess of $130 million.* Because of this sale, as well as the strong results in London of our Contemporary and Old Master sales in July, we expect a stronger third quarter than last year.”
Second and Third Quarter Sales
In a most eventful season, Sotheby’s sold the top lot of the year thus far, Francis Bacon’s Triptych, 1976 for $86.3 million, setting the record at auction for the artist as well as for any work of Contemporary Art. This masterpiece was sold in our May evening sale of Contemporary Art in New York, an auction which brought $362.0 million, our highest single sale total in Company history. The week’s total of Contemporary Art sales were $469.8 million, at the pre-sale high estimate of $473 million and up 36% from the prior year with eight works selling for $10 million or more. The New York May Impressionist sales also achieved excellent results with a total of $272.6 million, well within the pre-sale estimate of $245/337 million.
Also in New York, Sotheby’s spring sale of American Paintings brought an exceptional $87.0 million, well above the high end of the pre-sale estimate of $53/77 million and 56% above the prior year’s total. Highlighting the sale was Edward Hick’s Peaceable Kingdom which achieved $9.7 million and set the record for a work of American Folk Art as well as the record for the artist at auction.
Sotheby’s summer fine arts sales in London in late June and early July were the best in our history, bringing a remarkable $497.5 million over the two week period, near the high end of the pre-sale estimate of $358/511 million and 24% above the prior year’s total. The Impressionist and Modern Art sales brought $255.1 million and were highlighted by the sale of Gino Severini’s Danseuse for $29.6 million, seven times the previous record for a work by the artist. London’s Contemporary Art sales totaled a tremendous $242.4 million and were highlighted by the sale of Francis Bacon’s Study for Head of George Dyer for $27.4 million, well in excess of the pre-sale high estimate of $16 million. A remarkable 102 lots were sold for $1 million or more during the two week period.
Sotheby’s July Old Masters sales in London brought a strong $117.3 million, above the pre-sale high estimate of $105.5 million and 32% above the prior year’s total. The top lot of the sales was a re-discovered portrait by Frans Hals of Willem van Heythuysen which sold for $14.0 million. Auction records were set for nineteen artists and twenty lots were sold for $1 million or more.
Upcoming Sales
On September 15th and 16th in London, Sotheby’s is privileged to present “Beautiful Inside My Head Forever,” a major auction of new works by Damien Hirst. The over 200 lots in the two day sale were all created over the past two years and incorporate an extraordinary range of works. The centerpiece of the evening sale is The Golden Calf, a remarkable new sculpture of a bull in formaldehyde whose head is crowned by a solid gold disc and hooves and horns are cast in 18 carat gold. The sculpture is estimated to realize $16/24 million and the entire sale is estimated to bring in excess of $130 million.
Sotheby’s Hong Kong autumn sales will be held from October 4th to 8th and are estimated to total approximately $265 million which is 31% higher than last fall’s sales total of $202.4 million. Highlighting the sales are the Qianlong Imperial Seals from the Estate of Emile Guimet (estimate in excess of $6.4 million), as well as two exceptional scrolls, the Dayue Tu, the Qianlong Emperor’s Review of the Grand Parade (estimate in excess of $10.2 million) and the Compilation of the Lanting Xu Imperial Collection of Documents Woven in Kesi (estimate in excess of $7.7 million).
For the third year in a row, Sotheby’s will be visiting Chatsworth in the British countryside with a major exhibition of Modern and Contemporary sculpture, Beyond Limits. Works by artists such as Fernando Botero, Kiki Smith, Ron Arad and Salvador Dali will be displayed and available for private sale. The exhibition will run from September 9th to November 2nd.
On October 2nd Sotheby’s Paris will offer the late Swiss businessman Léon Levy’s Collection of Important French Furniture and Works of Art, which is estimated to bring $9/16 million. Highlights from the exquisite 18th century collection will include a pair of gilt-bronze candelabra from the Louis XVI period (estimate of $1/2 million) and a giltbronze console-table from the Régence period (estimate of $0.9/2 million).
In November, Sotheby’s New York will present for sale three important paintings by the Russian artist Boris Dmitrievich Grigoriev on behalf of the Berkshire Museum in Pittsfield, Massachusetts. Included in the offering is Grigoriev’s Pipe Players, a preeminent example of the artist’s Visages du Monde (Faces of the World) cycle of 1920-31. Shepherd of the Hills, which depicts Russian poet Nikolai Klyuev, and Man with Pipe will also be offered. The three paintings are estimated to bring $7/10 million combined.
Additional Upcoming Sales
Sotheby’s four sales of Asian Art in New York will take place the week of September 15. The September 16 sale of Fine Chinese Ceramics and Works of Art Including Chinese and Japanese Art from the Collection of Frieda and Milton F. Rosenthal comprises approximately 300 lots and is estimated to bring $6/8 million. The cover lot and one of the top highlights of the sale is a magnificent and very rare Ming dynasty Guhyasadhana Avalokitesvara, from the Xuande reign (1426-1435) estimated to sell for $1.4/1.6 million. The section of the sale devoted to Chinese and Japanese Works of Art from the Collection of Frieda and Milton Rosenthal features classical Ming and Qing furniture and several fine examples of 17th and 18th Century Huanghuali furniture with beautiful patina from years of superb attention, and a superb selection of Japanese Gold Lacquer. Leading the Rosenthals’ Chinese offerings is a Limestone Buddhist Stele from the Northern Wei Dynasty, mid-6th Century (est. $120/160,000).
Among the highlights of the September 17 sale of Contemporary Art Asia: China Korea Japan are Zeng Fanzhi’s Mask Series, 1997 (est. $900,000/1.2 million), and Cai Guo-Qiang’s Two Eagles (est. $400/600,000). The sale will also feature Wang Guangyi’s Great Criticism Series: Longines (est. $250/350,000), Liu Ye’s Untitled, 1998 (est. $250/350,000) and Zao Wou-Ki’s 16.5.1959 (est. $250/350,000). The Korean section of the sale will feature two paintings by Kim Whanki: Untitled and Les Oiseaux Volants, each estimated to bring $200/300,000; and highlighting the Japanese offerings is Yayoi Kusama’s Love in the Night (est. $120/180,000).
Sotheby’s fall sale of Modern and Contemporary Indian Art: India Pakistan Sri Lanka will be held in New York on September 18. The auction will include paintings, sculpture and photography by such important Indian artists as Tyeb Mehta, M.F. Husain, F.N. Souza, Ram Kumar, Thukral and Tagra, Subodh Gupta, Ravinder Reddy and Rashid Rana, among many others. The offering of approximately 120 lots, which is estimated to bring $6.8/9.5 million, features a rarely available Tyeb Mehta, Untitled from his Falling Figure with Bird series (est. $1/1.5 million). The sale will also include a selection of early figurative works from M.F. Husain, highlighted by an Untitled image of a horse, made in the 1960s immediately following, and obviously influenced by, his recent visit to China. One of the first Indian artists exhibited abroad, Ravinder Reddy, is represented in the sale by a large terracotta sculpture of a woman’s head (est. $160/220,000) The contemporary portion of the sale also features a selection of works by up-and coming Indian artists working in a variety of media.
Sotheby’s Hong Kong Sales will be held October 4 through 8 and will include over 1,500 lots with an estimated value of approximately HK$2 billion/$256 million. For the first time ever, Sotheby’s Hong Kong will hold an evening sale of Modern and Contemporary Asian Art on October 4, featuring significant works by artists from China, Japan, Korea, India, and Southeast Asia. Highlights from the sale will include Zeng Fanzhi’s After the Long March Andy Warhol Arrived in China (est. HK$ 20/30 million, $2.56/3.84 million), Liao Jichun’s The Ancient Castle in Spain (est. HK$ 18/25 million, $2.3/3.2 million), and Nam June Paik’s Big Shoulder (est. HK$ 3.5/4.5 million, $448/576,000).
On October 8, Sotheby’s Hong Kong will hold its Chinese Ceramics and Works of Art Sale highlighting Legacies of Imperial Power, consisting of Qing Imperial Seals from the Estate of Emile Guimet, Two Exceptional Qianlong Scrolls, and Treasures from Private Collections. Highlights will include the scroll Dayue Tu,The Emperor Qianlong’s Review of the Grand Parade of Troops, Qing Dynasty, Qianlong Period, which is estimated to achieve in excess of HK$80 million ($10.2 million) and An Important and Superb Imperial White Jade ‘Dragon’ Seal, Qing Dynasty, Qianlong Period, expected to fetch in exces of HK$ 50 million ($6.4 million).
On September 26, Sotheby’s New York will offer as the centerpiece of its September 2008 Americana week a single-owner sale of Property of Rear Admiral Edward P. Moore and Barbara Bingham Moore, the esteemed late Washington, D.C., collectors. The sale, which is expected to bring in the region of $7 million, will feature one of the most important groups of early American Furniture ever to appear at auction and an extraordinary early and vibrant example of Edward Hicks’ Peaceable Kingdom (est. $2/3 million).
Sotheby’s September 26 sale of Important Americana will be highlighted by the Van Pelt-Robb Family Important Chippendale Carved and Figured Mahogany Dressing Table with untouched original finish, estimated at $800,000/2 million. The table features intricately carved legs as well as carvings to the case and beautifully executed shell appliqués and original hardware. Highlighting the Folk Art offerings this season is a Scrimshaw Whale Tooth engraved by William A. Gilpin, which has been proclaimed as a key source in unlocking the mysteries of an historic and highly regarded series of scrimshaw sperm whales’ teeth (est. $40/60,000).
On September 29 and 30, Sotheby’s Amsterdam will offer a wonderful selection of sculpture, furniture, paintings, ceramics, silver and works of art from selected European collections. Many of the works on offer are very fresh to the market, having been in collections or estates for at least several decades. On offer will be such interesting collections as A Distinguished Private Collection from Corsica, the collection of the Dutch Museum van Gerwen-Lemmens, arts and antiques from the Castle Gruitrode in Belgium, and a collection of Caricatures by Daumier.
In the fall of 2008 and spring of 2009, Sotheby’s New York will offer for sale Property from the Collection of Frieda and Milton Rosenthal, distinguished collectors and philanthropists. This collection includes the most important compilation of African and Oceanic Art to be offered in forty years in New York, which will be presented as a single-owner sale on November 14. The historical significance of many of the works in their collection extends far past the context of their creation; for example, the pair of Senufo Rhythm Pounders (est. $3/5 million) and the Sawos Malu Board (est. $500/700,000) are iconic sculptures which inspired the development of Modern Art movements including Cubism and Surrealism. The collection also features exceptional works of American Indian, Japanese and Chinese Works of Art and Jewelry to be offered in sales throughout the fall 2008 and spring 2009 seasons. Property from the Rosenthal Collection is estimated to sell for $10/15 million.
Property from the Estate of Rochelle Sepenuk will be held in New York on October 21. The sale of approximately 230 lots represents one of the finest collections of 19th Century sculpture, furniture, decorations and paintings to appear on the auction market in recent history and is estimated to bring $6/9 million. The auction will include works from both Ms. Sepenuk’s private collection and her prominent New York gallery, Gallery 63, and will be highlighted by a Magnificent Louis XV Style Gilt-Bronze Mounted Kingwood and Tulipwood Bureau à Cylindre (est. $200/300,000).
The October 23 sale of 19th Century European Art including The Orientalist Sale at Sotheby’s New York will feature a strong section of works by Jean-Baptiste-Camille Corot and Jean- François Millet, highlighted by Corot’s Mantes, Les Bords de la Seine au Pied du Pont (est. $1/1.5 million) and Millet’s Boucheron preparant des fagots (est. $300/400,000). For the second year at Sotheby’s, a separate catalogue will be dedicated to an extensive selection of Orientalist Art, the star of which is Le Barde Noir by Jean-Léon Gérôme (est. $700,000/1 million), depicting a seated Nubian Musician. Other featured Orientalist paintings include Leopold Carl Müller’s The Almeh’s Admirers (est. $800,000/1. 2 million), Rudolf Ernst’s The Venerated Elder (est. $600/800,000), Giulio Rosati’s The Dance (est. $400/600,000) and Benjamin Constant’s Twilight Hours (est. $400/600,000).
On October 24, Sotheby’s New York will offer property from the San Francisco antiques dealer Foster Gwin. As a result of owners Collier and Victoria Gwin’s decision to remodel their gallery in historic Jackson Square, and build an apartment on the top floor, collectors will now be presented with a unique opportunity to bid on many of Foster Gwin’s finest pieces. The sale of over 200 lots will include unusual examples of 17th and 18th century Continental Furniture, Antiquities, and an offering of Abstract Expressionist paintings, with an emphasis on California artists. Highlighting the furniture selection is mid-eighteenth century Italian Rococo Red Japanned Slant-Front Desk (est. $300/500,000).The entire collection is estimated to bring more than $4 million.
On October 31, Sotheby’s New York will offer one of Norwegian Expressionist master Edvard Munch’s most iconic works, The Scream. The sale offers a rare opportunity for the collecting community to acquire one of the most broadly recognized images of the 20th century. The lithograph is one of only three known examples still held in private hands from approximately twenty-five documented impressions and it is estimated to sell for $2/3 million.
The sale of Important Watches will be held in Geneva on November 16 and will be highlighted by an Exceptional and Very Rare Pink Gold Perpetual Calendar Chronograph Wristwatch by Patek Philippe with Moon-Phases, 1951, ref.2499, First Series (est. CHF 1.2/ 1.8 million, $1.14/1.72 million) and by an Important and Unique Automatic Perpetual Calendar Wristwatch by Patek Philippe with Leap-Year Subsidiary, 1970, ref.3448 (est. CHF 1.3/2 million, $1.24/1.91 million).
Following the highly successful May auction, the November 19 Magnificent Jewels sale in Geneva will include a sumptuous array of spectacular signed jewels and fine gemstones such as a Diamond Waterfall Necklace with Brooch Attachment signed by Sterlé (est. CHF 1.05/2.1 million, $1/2 million) and a Magnificent and Extremely Rare Natural Pearl Necklace with an Emerald and Diamond Clasp (est. CHF 1.5/3 million, $1.45/2.9 million).
Sotheby’s London will offer a one-off, spectacular single-owner sale of British Art on November 19. Entitled ‘A Great British Collection,’ the pictures come from the collection of Sir David and Lady Scott, two avid collectors of art and devoted and celebrated British gardeners. During their lives the Scotts amassed an exceptional array of British pictures that incorporates Victorian and 20th Century British Art and in its range and freshness to the market, the collection is the last of its kind to remain in private hands. The appearance on the market of this remarkable collection, which was begun in 1914 and continued over many decades, is virtually without precedent in the post-war era. The sale is expected to bring in the region of £5 million ($10 million). It will offer collectors a unique opportunity to compete for some of the most important British works, including many celebrated Victorian paintings which have been unavailable for generations.
Spring and Summer 2008 Highlights - Recent Sales
Fine Art
Sotheby’s two-day series of Contemporary Art sales in New York on May 14-15 brought a grand total of $469,807,775 (est. $371.1/472.7 million), the highest total in the two-week series of auction, and Sotheby’s highest total for a Contemporary sales series ever. The evening sale was the best auction in the Company’s history, bringing $362,037,000 (est. $288.1/356.7 million), and was highlighted by Francis Bacon’s Triptych, 1976 - a masterpiece of the 20th century and the most important work by the artist in private hands - which sold for $86,281,000, a record for a contemporary work of art at auction and for the artist at auction (est. in the region of $70 million). The sale also featured Property from the Collection of Helga and Walther Lauffs, one of the most extraordinary single-owner offerings of Contemporary Art to ever appear on the market, which brought $96,105,000, far above its high estimate (est. $47.1/65.2 million). Eighteen artist records were set at the sale, for works by Francis Bacon, Yves Klein, Takashi Murakami, Robert Rauschenberg, Tom Wesselmann, Piero Manzoni, Robert Smithson, Georg Baselitz, Hans Hofmann, Lee Krasner, Dan Flavin, Claes Oldenburg, Carl Andre, Joseph Beuys, Robert Mangold, Brice Marden, Jeff Wall and Subodh Gupta.
The Evening Sale of Contemporary Art at Sotheby’s London on July 1 achieved the phenomenal sum of £94,701,550 ($188,853,831) against a pre-sale estimate of £67.4/96.6 million, making it the most successful summer sale of Contemporary Art in Europe. The sale had numerous high points, with records achieved for 11 different artists. Study for Head of George Dyer, 1967 by Francis Bacon sold for £13,761,250 ($27,442,685), against a pre-sale estimate in excess of £8 million. Overseas Nurse by Richard Prince sold for £4,241,250 ($8,457,901), achieving a new record for the artist at auction and Jean-Michel Basquiat’s early masterpiece, Untitled (Pecho/Oreja) from 1982-83 was sold on behalf of the rock band U2 for £5,081,250 ($10,133,029). Following the phenomenal success of the group of works from the Helga and Walther Lauffs Collection offered at Sotheby’s New York in May 2008, the July London series included a total of 53 works from the distinguished collection, 12 of them in the Evening sale. The group of 12 works performed well above expectations raising a total of £18,983,000 ($37,833,130), against a pre-sale estimate of £6.5/8.9 million.
In Paris, the May 26-27 Contemporary Art sale series fetched €23,680,650 ($37,218,878). The sale was highlighted by Francis Bacon’s Pope (c.1957-59), which was acquired from the artist in 1959 and sold for €4,624,250 ($7,267,934) against an estimate of €2/3m. In addition, Ligne de la Rupture (1970-71), one of Joan Mitchell’s most famous works, brought €3,840,250 ($6,035,721) (est. €2.2/3.2m).
The two-day series of Impressionist and Modern Art sales in New York on May 7-8 totaled $272,579,150, above the low estimate of $244.5 million. The evening sale achieved $235,333,000 and was highlighted by Fernand Léger’s Cubist masterpiece, Étude pour La Femme en Bleu, which sold for $39,241,000, a record for the artist at auction. Edvard Munch’s Girls on a Bridge surpassed the high estimate of $28 million to bring $30,841,000, also a record for the artist at auction. Four works from the Raymond and Patsy Nasher Collection brought $27,548,000 (est. $17.8/25.7 million) and were highlighted by Pablo Picasso’s Le Baiser from 1969 which sold for $17,401,000 (est. $10/15 million).
The Impressionist and Modern Art sales in London on June 25 and 26 realized £129,530,507 ($255,072,281) (est. £93.5/132.8 million), the highest total for any June series of sales of Impressionist and Modern Art held by the company. In the evening sale, Gino Severini’s Danseuse, of 1915, made £15,049,250 ($29,615,419) - seven times the previous record for a work by the artist, and a new record for any Futurist work ever sold at auction. Alberto Giacometti’s multiple-figure bronze Trois Hommes qui Marchent I (1948) sold for £9,449,250 ($18,595,179) - double the pre-sale estimate of £4/6 million and a record for any 20th -century sculpture sold at auction in Europe. The Impressionist and Modern Art sales included 17 works from the collection of influential Norwegian art connoisseur and dealer Haaken A. Christensen (1924-2008), which realized a combined total of £14,772,350 ($29,063,391) against an estimate of £6.7/10.1 million. Proceeds from the sale of these, and other works from Christensen’s collection, will benefit Médecins Sans Frontières (MSF) - one of the world’s leading international humanitarian aid organizations.
The sale of American Paintings, Drawings and Sculpture at Sotheby’s in New York on May 22 brought $87,006,200, the second highest total ever for a sale of its kind. Edward Hicks’ Peaceable Kingdom with the Leopard of Serenity achieved $9,673,000, a record for a work of American Folk art and a record for the artist at auction. Seventeen works sold for over $1 million, three of which sold for over $5 million. In addition to Hicks, thirteen artist records at auction were set for artists including Willliam Merritt Chase, Frederick Remington, William Sidney Mount, Charles Caryl Coleman and Thomas Birch.
Sotheby’s summer sales of Old Master Paintings in London on July 9 and 10 realized a combined total of £59,468,750 ($117,307,267), a figure easily in excess of pre-sale expectations of £36.8/53.5 million. The £59.4 million sum represents the second highest total for a series of Old Master sales at Sotheby’s worldwide and is 31% up on the same week last year (£45,220,480 or $91,300,455), and an 87% increase on the July 2006 total (£31,814,160 or $58,656,233). A rediscovered portrait by Frans Hals (Portrait of Willem van Heythuysen) sold for £7,097,250 ($13,995,067) against an estimate of £3/5 million - the second highest price ever achieved for a work by the artist at auction. Pope’s Villa at Twickenham, a masterpiece by Britain’s most celebrated artist, Joseph Mallord William Turner, sold for £5,417,250 ($10,682,275) - the fourth highest price for a work by the artist ever achieved at auction. Jan Brueghel the Elder’s The Edge of a Village with Figures Dancing - one of the finest works by the artist remaining in private hands - made £3,513,250 ($6,927,778), establishing a new auction record for the artist.
The two-day sale of Russian Art at Sotheby’s New York in April totaled $46,449,401 (est. $41/57 million). Highlighting the morning session of 19th and 20th Century Paintings was Arkhip Kuindzi’s Birch Grove, which sold for $3,065,000 (est. $2/3 million), the sale’s overall top price and a record for the artist at auction. The top lot from the afternoon session dedicated to Post War and Contemporary Art was Ilya Kabakov’s Complete Album Flying Komarov Containing 32 Original Drawings, which sold for $445,000, far exceeding its estimate ($200/250,000). The Works of Art session was galvanized by an extended bidding war over a Fine and Rare Fabergé Icon of Christ Pantocrator (est. $100/150,000) which finally sold, to rousing applause, for $780,000 to a bidder on the phone. Five works sold for more than $1 million, and a total of fifteen artist records were set.
Sotheby’s summer series of Russian art sales in London on June 9, 10 and 12 realized £39,721,500 ($78,053,345), the highest ever total for any such series. The highest price was for an Important Diamond-Set Badge of The Order of St. Andrew, which sold for £2,729,250 ($5,334,865), more than four times its pre-sale high estimate of £600,000 and setting a new record for any Order at auction. The evening sale of Russian Art achieved a total of £21,186,850 ($41,714,789) and the top lot was Natalia Goncharova’s Nature Morte aux Fruits which sold for £2,281,250 ($4,491,553). Still Life with Red Flowers and Peaches, the second work by Goncharova in the sale, realized £1,161,250 ($2,286,385). The artist Zinaida Serebriakova broke the £1 million mark, when her Reclining Nude, signed and dated 1929, sold for £1,071,650 ($2,109,972), more than five times its pre-sale high estimate.
The two-day sale of Latin American Art on May 29-30 in New York brought $28,141,600 (est. $18,791,000/24,528,000), well above expectations and the highest total ever for a sale of Latin American Art at Sotheby’s. The sale included the most important selection of paintings by Rufino Tamayo to appear on the market in several years. Tamayo’s El Comedor de Sandias (The Watermelon Eater) was the top lot of the sale, bringing $3,625,000 (est. $2/2.2 million), the second highest price ever achieved for a work by the artist at auction. Nineteen artist records at auction were set during the sale, and six records for a medium by the artist were achieved.
On April 18, Sotheby’s sale of 19th Century European Art in New York, including The Orientalist Sale, achieved $26,377,050 (est. $23.7/32.9 million). The sale was the first time in almost a decade that Sotheby’s held a dedicated offering of Orientalist Art, highlighted by exceptional masterpieces representing the entire region including North Africa, the Middle East and Turkey. The Orientalist Sale, comprising 90 lots, realized $9,025,750 (est. $7.4/10.3 million). In the 19th Century European Art sale, a great selection of works by the Academic painter William Bouguereau were highly sought after, and produced the sale’s top lot, Le Déjeuner du Matin (Morning Breakfast), which sold for $2,057,000 (est. $1.2/1.5 million). In another highlight, the masterpiece Gulliver and the Lilliputians, by French artist Jehan-Georges Vibert, more than doubled its high estimate and set a record for the artist at auction, bringing $1,497,000 (est. $50/700,000).
The sale of Orientalist Art at Sotheby’s London on May 30 realized £8,060,225 ($15,929,423), a sum well towards the upper end of pre-sale expectations (£6.2/8.6 million). The cornerstone of the sale was a monumental masterpiece by the pre-eminent Turkish artist Osman Hamdy Bey entitled A Lady of Constantinople. This large-scale work sold to a private collector bidding on the telephone for £3,380,500 ($6,680,662). It was one of the greatest works by the Turkish artist ever to have come to the market, and the price not only established a new record for the artist at auction but also set an auction record for a Turkish painting.
In the May 7 sale of Old Master Paintings in Amsterdam, Flemish master Sebastaen Vrancx’s Four Seasons sold for €1,208,250 ($1,872,606), the second highest price ever paid for an Old Master Painting in the Netherlands, and an auction record for the artist.
Among the highlights from the spring season in Milan was the May 27 Modern and Contemporary Art sale, which brought €12,368,680 ($19,485,000). The top lot of the sale was Lucio Fontana’s Concetto Spaziale, which topped presale expectations (€500/700,000) selling for €1,320,250 ($2,079,856). In the same sale, a work by Afro, Segno Limite, sold for €659,450 ($1,038,865), a world record for the artist at auction.
Sotheby’s May 27 Swiss Art sale totalled CHF 15,858,550 ($15,440,836). Record prices were achieved for two artists — Albert Anker when his Die Kartenlegerin sold for CHF 2,625,000 ($2,555,858), and for Robert Zünd when his Haus zwischen Nussbäumen (Schellenmatt) achieved CHF 649,000 ($631,905). Works by Giovanni Giacometti also performed well this spring: Blick über Capolago auf den Silsersee achieved CHF 1,505,000 ($1,465,358) and Winter bei St. Moritz fetched CHF 1,169,000 ($1,138,209).
Sotheby’s annual sale of Scandinavian Art in London on May 30 realized £5,192,900 ($10,262,728), surpassing expectations (est. £3.3/4.7 million). The top lot was Helene Schjerfbeck’s seminal oil painting, The Dancing Shoes / Tanssiaiskengät / Balskorna, which sold for a record-breaking £3,044,500 ($6,016,845). The remarkable price established not only a new auction record for Schjerfbeck but also represents a new record for a work by any Finnish artist at auction.
Decorative Arts
Furniture and Works of Art from the Collection of Dimitri Mavrommatis on July 8 in London attracted strong competition from the all corners of the globe, realizing the extraordinary sum of £10,410,600 ($20,535,950) against a pre-sale estimate of £5.5/ 8.7 million. No fewer than 80 of the 85 lots offered found buyers, with the majority of lots sold achieving prices well in excess of the pre-sale high estimate. The top lot in the sale was an Important and Rare Large Gilt-Bronze-Mounted Chinese Black and Gold Porcelain Pot-Pourri Vase and Cover (the Gilt-Bronze Louis XV, circa 1745, the Porcelain Qianlong, 1736-1795), which sold for £2,169,250 ($4,279,063) - far exceeding its pre-sale estimate (”in excess of £1 million”), and establishing a new auction record for a piece of mounted porcelain.
Sotheby’s spring sales of Photographs in New York totaled $17,302,050, with all three auctions surpassing their high estimates. This extraordinary season was highlighted by two single-owner sales: The Quillan Collection of 19th and 20th Century Photographs, which brought $8,901,350 (est. $4.5/7 million), and Edward Weston’s Gifts to His Sister and Other Photographs, which achieved $1,530,375 (est. $900,000/1.4 million). A various-owners sale of Photographs also performed well, realizing $6,870,325 (est. $3.6/5.6 million). Records were set across the three sales for a total of 25 artists at auction, including Edward Weston, Paul Strand and Diane Arbus.
The two-day sale of Prints in New York totaled $11,592,857, well within the pre-sale estimate of $9.5/13.1 million, with strong international bidding from America, Asia and Europe. Edvard Munch’s Angst, brought $892,200 (est. $200/300,000) demonstrating the great interest in iconic images by important artists; the top ten lots also included Richard Diebenkorn, Andy Warhol, Marc Chagall and Jasper Johns, among others.
Sotheby’s May sale of African, Oceanic & Pre-Columbian Art, featuring several distinguished private collections, achieved a total of $10,165,325 (est. $4.7/6.7 million). The highlight of the sale was A Magnificent and Highly Important Baga Serpent, an impressive sculptural object from The Republic of Guinea that, after spirited bidding, finally sold for $3,289,000 (est. $1.5/2 million) setting a record for a Baga sculpture at auction.
Sotheby’s June 11 sale African and Oceanic Art in Paris totalled €6,432,325 ($9,980,974) and was highlighted by a Sapi-Portuguese Salt-Cellar from Sierra Leone (late 15th/ early 16th century) which realized €1,296,750 ($2,012,154) and was a record price for a 16th century African ivory, doubling the high estimate of €600,000.
The sale of Antiquities in New York on June 5 brought a strong total of $8,933,001, exceeding the pre-sale high estimate of $6.2 million. The top lot of the sale was a superb and rare Cycladic Marble Figure of a Man, Early Bronze Age I, circa 3200-2700 B.C., which sold for $1,314,500. Egyptian works accounted for five of the top ten lots in the sale. Chief among them was an Egyptian Basalt Bust of a Queen or Goddess, Ptolemaic Period, 305-30 B.C., which soared past a high estimate of $60,000 to sell for $1,082,500.
On April 24 Sotheby’s New York offered the single-owner sale Tom Devenish: The Collection, Highly Important English Furniture, which brought $11,091,403. For some forty years, Mr. Devenish, who died in October of 2002, was one of the leading dealers in English furniture and decorative works in New York, known for collecting unique objects of incomparable quality in their original condition. The top lot of the sale, A George II Carved Mahogany Open Arm Chair Bearing the Barrington Arms, Attributed to John Linnell, circa 1755, brought $937,000, well within the pre-sale estimate of $800,000/1.2 million.
Another notable single-owner sale followed on April 25 in New York: The Collection of Khalil Rizk, the renowned New York dealer, philanthropist, consummate collector and co-founder of The Chinese Porcelain Company who died in 2001. The sale, which consisted of hundreds of items from Mr. Rizk’s Manhattan residence, including French, English and Continental furniture, Chinese Export and European Porcelain, Glass, Silver and Old Master Paintings and Drawings, achieved $3,334,490. The top lot was A Rare Chinese Export Armorial Ewer and Cover (est. $60/80,000), which sold for $253,000.
The sale of Important 20th Century Design at Sotheby’s New York on June 14 achieved $7,398,250 (est. $6.9/9.8 million). The sale was highlighted by an Important and Rare “Apple Blossom” Table Lamp, ca. 1905, by Tiffany Studios, which sold for $932,000 (est. $250/350,000), setting a record for the model at auction. The Artek Pavilion by Shigeru Ban sold for $602,500 (est. $800,000/1 million) and, thanks to its new owner, will have a rigorous exhibition schedule.
Sotheby’s June 3 Paris sale of 20th Century Decorative Arts & Design, including the Marquise de Morbecq Collection of furniture by Marc du Plantier, proved tremendously successful, yielding €4,154,425 ($6,454,114). The sale’s top price of €516,750 ($802,854), a world record for the artist, went to Jean Royère’s iconic Polar Bear suite comprising two fauteuils and a settee, designed in 1947 (estimate €300/500,000).
Asian Art
Sotheby’s four sales of Asian art in New York this spring brought $46,435,414. The week was highlighted by Sotheby’s fifth sale of Contemporary Art Asia: China Korea Japan in New York, which brought a solid $23,210,535 (est. $23.1/33.4 million) and was highlighted by Zeng Fanshi’s Mask Series No. 11, 1966, a triptych, which sold for $1,127,000 (est. $800,000/1 million).
Fine Chinese Ceramics and Works of Art, which featured Qing period jades, ceramics of the Five Dynasties to Early Ming period bamboo carvings, Ming and Qing dynasty porcelains and works of art from a number of distinguished private collections, totaled $11,091,263 and featured The Dexingshuwu Collection of exquisite ceramics. The top lot of this sale, from the Collection, was a ‘Jun’ Purple-Splashed Narcissus Bowl, Incised Si (‘Four’) to the Base, which commanded $869,000, far above its high estimate (est. $400/500,000). The sale also set records for a Chinese contemporary ink painting at auction as well as for works by Li Huayi, Huang Gang, Gui Jin, Li Jikai and Qui Xiaofei, among others.
The two Indian Art sales this spring brought a grand total of $12,133,626 (est. $10.6/15.6 million). Indian Art, including Modern Paintings, achieved $5,106,875 (est. $4.8/6.8 million). Top prices were dominated by works by M.F. Husain, led by his Untitled work from 1953, which sold for $409,000 (est. $200/300,000). Indian and Southeast Asian Art, including Works of Art and Miniatures, realized $7,026,758 (est. $5.7/8.5 million), highlighted by a Gilt Copper Buddha Shakyamuni, Tibet, 14th/15th
Century, which sold for $1,385,000 (est. $1.5/2.5 million).
Sotheby’s spring 2008 series of sales in Hong Kong totalled HK$1,774,494,000 (US$227,499,231), the highest ever total for a series of sales at Sotheby’s Hong Kong. The sales, which included approximately 1,700 lots of classical, Modern and Contemporary Chinese Art, watches and jewellery, were estimated to bring HK$1.5/2 billion. The top lot was a Magnificent and Extremely Rare Embellished Gold Tripod Vessel and Cover, Ming Dynasty, Xuande Period, which commanded HK$116,807,500 (US$14,947,856) to set the world auction record for Chinese Metalwork. An Exceptionally Magnificent Gold, Cloisonne and Beijing Enamelled Tibetan-styled Ewer, Duomuhu Engraved Mark and Period of Qianlong fetched HK$56,327,500 ($7,231,888) - a record for Qing Gold at auction.
Contemporary Chinese Art totalled HK$403,042,750 (US$51,672,148). The first offering of the Estella Collection brought HK$139,352,000 (US$17,865,641), far exceeding its high estimate of HK$93.6 million. Zhang Xiaogang’s Bloodline: The Big Family No.3 commanded HK$47,364,500 (US$6,061,619), a record for the artist at auction. Liu Xiaodong’s Battlefield Realism: The Eighteen Arhats sold for HK$61,927,500 (US$7,949,014) in the various-owners sale of Chinese Contemporary Art Sale - a record for the artist at auction.
Sotheby’s spring series of Chinese Works of Art sales in London on May 14 realized a total of £16,751,379 ($32,549,604) - the highest total ever for such a series in London and a sum well in excess of the pre-sale estimate of £5.2/7.4 million. The sales included works formerly in the Collection of Dr. Johan Carl Kempe whose two sessions reached a total of £13,158,504 ($25,568,289) (est. £2.6/3.6 million). Top lots included a fine and very rare 8th/9th century Tang Dynasty Parcel-Gilt Bowl
and Cover which sold for £1,588,500 ($3,086,614) against an estimate of £300,000-400,000, and a rare Northern Song Dynasty ‘Ding’ Lobed Bowl, which sold for £636,500 ($1,236,783) against an estimate of £200,000-300,000. Fine Chinese Ceramics and Works of Art from various sources totaled £3,592,875 ($6,981,315) against a pre-sale estimate of £2.67/3.93 million. The top lot was a Fine and Large Blue and White Ming style Vase, which sold for £288,500 ($560,584).
In Paris, the June 12 sale of Asian Arts and Chinese Ceramics brought an impressive €6,841,275 ($10,583,795), the highest total to date obtained in the field by Sotheby’s France. The top price was €456,750 for a Kangxi Period Gilt-Bronze Shyama Tara (est. €300/400,000).
Wine
Sotheby’s New York held four wine sales in the first half of 2008, led by the April 10 sale of Magnificent Bordeaux and Burgundy from an Important Private Cellar, which brought $6,134,035—Sotheby’s third highest value single-owner sale worldwide. The sale featured the greatest collection of rare Domaine de la Romanee-Conti wines ever offered by Sotheby’s, and attracted a diverse group of bidders from over 15 countries. Over 40% of the value of the sale was purchased by the top four buyers, who were all from Hong Kong. The highlight was the sale of six magnums of Domaine Romanée-Conti 1971 for $169,400 (est. $110/170,000).
The February 25 sale of an Exceptional Private Cellar brought $1,588,368 (est. $1.1/1.5 million); the March 15 sale of Finest and Rarest Wines Featuring the Cellar of V. Cheryl Womack also exceeded expectations, bringing $3,964,565 (est. $2.2/3 million), and the May 17 sale of Finest and Rarest Wines, Including The Cellar of William S. Morris III and Wines Direct from Chateau Angelus and The Sir Peter and Lady Michael Foundation totaled $2,911,260, well within the pre-sale estimate (est. $2/3 million). The latter sale included $182,286 to benefit The Sir Peter and Lady Michael Foundation for Cancer Research.
Jewellery and Watches
The April 17 sale in New York of Magnificent Jewels achieved a total of $26,343,850 (est. $21/28 million). Leading the sale was a stunning collection of Van Cleef & Arpels jewels from The Estate of Rita K. Hillman, a distinguished New York philanthropist and renowned collector of fine art, which totaled $4,945,825 (est. $2.8/4 million). The nine lots were 100% sold, highlighted by the sale of an extraordinary sautoir necklace, offered as two separate lots. The Natural Pearl and Diamond Necklace, Van Cleef & Arpels, brought $1,329,000 (est. $800,000/1.2 million), and the Fancy Intense Yellow Diamond Pendant sold to a different bidder for $1,833,000 (est. $800,000/1.2 million). The top-selling individual lot in the sale was a magnificent Diamond Ring, Harry Winston, The Property of a Lady, Sold to Benefit a Charitable Foundation, which realized $3,625,000 (est. $1.8/2.5 million).
The spring sale of Magnificent Jewels, Noble Jewels and Jewels from the Collection of Lily Marinho in Geneva on May 15 raised CHF 59,977,350 ($57,141,621), the highest Swiss franc total for a Jewellery sale in Switzerland. The Collection of Lily Marinho totalled CHF 11,612,350 ($11,063,318) while the sale of Noble Jewels brought CHF 7,516,350 ($7,160,977). The top lot was a Fancy Vivid Blue Pear-Shaped Diamond, mounted as a ring, weighing 3.73 carats which sold for CHF 5,201,000 ($4,955,097) - setting a new world record price per carat for any gemstone at auction ($1,328,444).
The sale of Important Watches in New York on April 23 achieved the highest total ever for a various-owners Watch sale at Sotheby’s New York, bringing $6,558,451 (est. $5.4/7.9million). The top lot of the sale was a Rolex Stainless Steel Oyster Cosmograph Daytona, Ref. 6263 with an Albino Dial, which realized $505,000 (est. $100/150,000), setting a record for a Rolex Daytona and for a Rolex sports model watch.
On May 11, the Geneva sale of Important Watches realized CHF 10,904,000 ($10,401,435), the highest total in this category at Sotheby’s Geneva. The top selling lot was an Extra Large and Possibly Unique Patek Philippe Chronograph, formerly the Property of Count Carlo Felice Trossi, which sold for over CHF 2 million ($2,236,919).
The sale of Important Watches at Sotheby’s Hong Kong in April was highlighted by a Patek Philippe Extraordinary and Rare Platinum Double-dialled Wristwatch with Twelve Complications which brought HK$11,751,500 (US$1,503,839) - a world auction record for a modern wristwatch.
About Sotheby’s
Sotheby’s is a global company that engages in art auction, private sales and art-related financing activities. The Company operates in 40 countries, with principal salesrooms located in New York, London, Hong Kong and Paris. The Company also regularly conducts auctions in six other salesrooms around the world. Sotheby’s is listed on the New York Stock Exchange under the symbol BID.
Forward-looking Statements
This release contains certain “forward-looking statements” (as such term is defined in the Securities and Exchange Act of 1934, as amended) relating to future events and the financial performance of the Company. Such statements are only predictions and involve risks and uncertainties, resulting in the possibility that the actual events or performances will differ materially from such predictions. Major factors, which the Company believes could cause the actual results to differ materially from the predicted results
in the “forward-looking statements” include, but are not limited to, the overall strength of the international economy and financial markets, political conditions in various nations, competition with other auctioneers and art dealers, the amount of quality property being consigned to art auction houses and the marketability at auction of such property. Please refer to our most recently filed form
10-K for a complete list of Risk Factors.
Financial Table Follows
All Sotheby’s Press Releases and SEC filings are available on our web site at www.sothebys.com. In addition, an outline of the conference call is available at http://investor.shareholder.com/bid/events.cfm.
Sotheby’s earnings conference call will take place on Tuesday, August 5, 2008, at 4:45 PM EDT. Domestic callers should dial: 877-548-7915 and international callers should dial: 719-325-4869. The call reservation number is 2194084.
To listen to the conference call via web cast, please go to http://investor.shareholder.com/bid/events.cfm You will need Windows Media Player or Real Player to access the call. Please download either of these programs before the call begins. The web cast will be available for replay for two weeks after the call.
*Note: All estimates do not include buyer’s premium.
