Sotheby’s has registered a good improvement in the earnings.

In a clear indication of the fact that global art markets are on a recovery path, the world’s leading auction house Sotheby’s has posted strong results for the latest quarter and year ended December 31, 2009.

Its net was the second highest ever in its history largely due to a rise in the commission it charges on auction sales as well as a cost-cutting drive. According to the auction house, income over the quarter till December 31 was $73.6m, compared to a loss of $9.3m in the corresponding period last year.

The president & chief executive of Sotheby’s, Bill Ruprecht, termed that the good fourth quarter results a ‘remarkable achievement’. He added, “We are encouraged by our outstanding fourth quarter. It has produced our second highest fourth quarter net income. We are well poised to capitalize on an economic upturn and art market rebound as it occurs.”

In spite of a 7% fall in net auction sales, Sotheby’s registered a substantial improvement in the earnings for fourth quarter 2009over the prior year. Net income was $1.09 per share, in comparison to a net loss for the prior period. This improvement in profitability is attributed to a significant increase in operating revenues.

Another factor that positively impacted revenues was a $19.9 million reduction recorded in principal activities losses due to the substantial levels of last year’s auction guarantee losses as well as inventory write-downs.