BIEL (dpa-AFX) - Swiss watch and jewelry maker Swatch Group (SWGAF.PK, SWGNF.PK) recorded a 8.8% decline in first-half 2014 operating profit to 830 million Swiss francs, from 910 million francs last year, hurt by the negative currency situation, the high level of marketing expenses for the Olympic Games in Sotchi and the fire at ETA; nevertheless, operating margin reached 20.2%.
During the first half, net income totaled 680 million francs, down 11.5% from 768 million francs, reported a year back.
Swatch Group generated gross sales of 4.535 billion francs at constant exchange rates in the first half of the year and thereby grew by a further 8.5%. The already overvalued Swiss franc strengthened further against currencies in all of the Group's important sales regions compared to the first half of the previous year. The extremely adverse exchange rate situation adversely impacted Group sales by 188 million francs or 4.5 percentage points. Net sales for the recent six-month period were 4.1 billion francs.
The Group's outlook in all regions and segments remains very good and a promising second half of 2014 is anticipated. Specially, in the USA and Japan, sales continue their very positive development.
Copyright RTT News/dpa-AFX