UPDATE 2-Sotheby's flags art market recovery following Q3 loss | Reuters

UPDATE 2-Sotheby's flags art market recovery following Q3 loss | Reuters BANGALORE, Nov 5 (Reuters) - Sotheby's (BID.N), the world's largest publicly traded auction house, said it was past the bottom in the art market with net auction sales trending higher in the second half of the year.Sotheby's shares, which fell 9 percent after the bell on a wider quarterly loss, recouped most of their losses following the positive commentary on trends in its earnings call.In regular trade, the shares closed up 15 percent on the New York Stock Exchange at $18.21 Thursday, a day after the company conducted an $180 million impressionist and modern art sale that blew past even the most optimistic estimates. [ID:nN0474431]"The art market is clearly in a better place than it was last autumn and the early spring of this year," Chief Executive Bill Ruprecht said.Net auction sales as a percentage of pre-sale estimates will be higher in the second half of 2009, compared with the first half, Ruprecht said on a conference call with analysts. [ID:nWNAB1626]The fourth quarter got off to a great start with almost two-thirds of the sales coming in at, or above, the company's highest pre-sale estimate, Ruprecht added. "I think the art market is back. It will improve gradually," JMP Securities analyst Kristine Koerber said.The auctioneer, which competes with privately held Christie's, also said it was on track to exceed its $160 million stated expense savings target.Sotheby's scaled back operating expenses by 38 percent or about $50 million during the third quarter.