Pablo Picasso's Boy with a Pipe was Sotheby's sale of the quarter

Reporting its results for the three months to 30 June, the New York-based business saw its quarterly net income rise from $14.2m last year to $42.5m.

Sotheby's chief executive Bill Ruprecht said the highlight of the quarter was the sale of Picasso's Boy with a Pipe.

This sold for $104.2m, the highest auction price for a painting.

Sotheby's chief executive Bill Ruprecht said the strong results reflected the continued recovery of the art market.

But he also warned that although the second half 2004 results are expected to be strong, it will be difficult to match the growth seen in the first half of this year, in part due to the seasonality of the business.