BIEL (dpa-AFX) - Swiss watch maker Swatch Group (SWGNF.PK, SWGAF.PK) on Tuesday reported over 18 percent increase in profit for the year, as demand increased for its watches in China. Swatch hiked its dividend 15 percent and said it expects growth to continue in 2012. Net income attributable to equityholders of the company increased to 1.27 billion Swiss francs ($1.38 billion) from 1.07 billion francs earned in the previous year. Pre-tax profit grew to 1.61 billion francs from 1.4 billion francs. Operating margin increased to 23.9 percent from 23.5 percent, despite the negative currency environment and the rise in commodity prices. Net sales increased to 6.76 billion francs from 6.11 billion francs in the prior year. Watches & Jewelry generated 5.95 billion francs, up about 14 percent from last year, helped by strength in Greater China. The maker of Omega watches and Breguet timepieces said the rise in prices for gold and diamonds had a negative impact on margins, but the company maintained its policy of not implementing short-term price increases to expand market share. Net sales from Production increased over 34 percent to 1.97 billion francs, amid a huge increase in demand for various components. The board will propose a dividend of 5.75 francs per bearer share for 2011, up 15 percent from last year. Looking ahead, the company said, 'We expect growth to continue in 2012, although this is more and more challenging due to the high benchmark. The Swatch Group will also continue to make targeted investments in 2012 in its worldwide distribution network and in its production capacities in Switzerland across all segments, despite the strong Swiss franc.' The stock is falling 4.50 percent in Zurich at 396 francs on a volume of 217,712 shares.
Copyright RTT News/dpa-AFX
© 2012 AFX News
