Swatch's net profit drops 28 percent

18th August 2009, Comments 0 comments

The world's biggest watchmaker Swatch Group said Friday that first half net profit dropped by 28 percent to CHF 301 million.

Zurich -- The world's biggest watchmaker Swatch Group said Friday that first half net profit dropped by 28 percent to CHF 301 million (EUR 196.9 million, USD 280.3 million).

Swatch said in a statement that there were already clear signs of a recovery in sales, which fell by 16 percent in net terms compared to the first six months of 2008 to CHF 2.35 billion.

However, operating profit fell by 41 percent to CHF 345 million, as the company sought to sell off stocks.

Swatch's net profit was above analysts' expectations of an average CHF 270 million profit, polled by the business news agency AWP.

Chief executive Nick Hayek already indicated that he expected increased sales in the second half of 2009.

"This positive trend has been clearly confirmed in July 2009," the group said Friday, forecasting sales in the second half comparable to, or for some brands above, the levels recorded in the same period in 2008.

Net sales over 2008 reached CHF 5.68 billion, diminished by a sharp rise in the Swiss franc against major currencies.

Swatch Group's share price increased by 8.81 percent at the opening of trading on the Swiss Market Index to CHF 228.6.

AFP / Expatica

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