Sotheby's reported unaudited consolidated earnings results for the second quarter and six months year ended June 30, 2016. For the quarter, the company's total revenues were $298,665,000 compared to $332,006,000 a year ago. Operating income was $130,083,000 compared to $116,458,000 a year ago. Income before taxes was $123,094,000 compared to $108,259,000 a year ago. Net income attributable to the company's was $88,964,000 or $1.52 per basic and diluted share, compared to $67,572,000 or $0.96 per basic and diluted share, a year ago. Adjusted net income was $88,591,000 or $1.51 per diluted share, compared to $73,061,000 or $1.04 per diluted share, a year ago. The company's reported adjusted net income, this represents a 21% increase in adjusted net income, but a 45% improvement in adjusted diluted earnings per share due to the common stock repurchases over the past year. Adjustments between GAAP and non-GAAP figures are largely the result of $5.8 million of after-tax leadership transition severance costs in the prior period. The comparison to second quarter results of 2015 is impacted by a 16% decrease in Net Auction Sales reflecting a comparable decline in the global art market. The effect of lower sales levels is somewhat mitigated by improved auction commission margin, from 15.5% in the second quarter of 2015 to 16.4% in the current quarter. The comparison of the current and prior year periods is also significantly influenced by a change in the timing of the summer Contemporary Art sales in London, which were held in the second quarter of 2016 after occurring in the third quarter in 2015. Also favorably impacting the comparison of second quarter results is lower variable compensation costs ($16.8 million, or 51%, decrease in incentive compensation expense and a $7.3 million, or 76%.

For the six months, the company's total revenues were $405,196,000 compared to $487,681,000 a year ago. Operating income was $98,094,000 compared to $134,862,000 a year ago. Income before taxes was $84,002,000 compared to $116,172,000 a year ago. Net income attributable to the company's was $88,964,000 or $1.03 per diluted share, compared to $67,572,000 or $1.04 per basic and diluted share, a year ago. This decrease is largely due to the same factors as affected the second quarter - lower sales volumes associated with the decline in the art market, partially offset by increased auction commission margin, lower variable compensation expenses, a favorable effective income tax rate, and the benefit of share repurchases on diluted earnings per share.

The company forecasted effective tax rate, excluding discrete items is lower this year, 26% versus 35% a year ago.