Sarine Sales Rise as Manufacturing Rebounds

RAPAPORT... Sarine Technologies' sales grew in the third quarter as the equipment maker benefited from a recovery in diamond manufacturing.Revenue jumped 63% year on year to $12.1 million, while net profit came to $1.9 million compared with a loss of $400,000 for the same period of 2020, the company reported Monday.Still, sales were lower than in each of the first two quarters of 2021, reflecting a seasonal dip in trading activity, as well as potentially negative market trends. The Israel-based company delivered nine diamond-mapping machines from its Galaxy family of products during the third quarter - fewer than management had expected."Following a strong recovery in the first half of 2021, the initial months of the second half were affected by the usual seasonal summer slowdown and by evolving uncertainties," Sarine said.The September Jewish holidays all occurred midweek this year, limiting the number of working days in the US, Belgium and Israel, the company noted. In addition, China's "common prosperity" strategy - seen by some as a crackdown on wealth - has raised questions about luxury demand in the key market. Meanwhile, rising rough prices relative to polished have trimmed manufacturers' profitability, Sarine added."Currently the midstream is absorbing this [price] disparity, having benefited from a very strong first half of 2021, but with the narrowing of the profit margins realized by the polishers, we do not expect this to be sustainable in the long term," the company cautioned.Image: Sarine headquarters in Hod HaSharon, Israel. (Sarine Technologies)