Swatch 2010 Sales Reach Record, Strong Start Into 2011
19 January 2011 - 5:38PM
Dow Jones News
Swatch Group AG (UHRN.VX) Wednesday said that its 2010 full year
sales topped 6 billion francs, or about $6.2 billion, for the first
time in its history, adding it is confident for 2011.
MAIN FACTS:
--Record year for the Swatch Group with Group sales of CHF 6.4
billion, an increase at constant exchange rates of 21.8% over 2009
and 12.7% over the previous record year 2008, despite capacity
bottlenecks and adverse exchange rates
--The extraordinary strength of our brand portfolio was again
reflected in an excellent performance by the watch segment in
practically all markets and price segments, with an increase at
constant exchange rates of 28.1%.
--Marked upturn in the Production segment, especially in the
second half of the year, with a year-on-year increase in sales of
+7.5%.
--Positive trend in the Electronic Systems segment with sales up
by +11.7% on 2009.
--Improved operating margin compared to previous year as well as
higher net income expected, despite an unfavourable currency
constellation at year-end.
--After a strong month of December with 21% growth at constant
rates in the segment Watches & Jewelry, there are already
indications in January 2011 of continued double-digit growth.
Outlook remains optimistic in the entire year 2011 for further
strong organic sales growth.
--Negative foreign currency development, mainly in the Euro and
US Dollar, impacted sales by CHF164 million or 3% versus 2009
--The Group expects an improved operating margin and a higher
net profit for the financial year 2010 compared with the previous
year. This improvement will be visible in all areas of the Group.
The record figures expected in absolute terms will be attenuated by
the extremely strong Swiss Franc.
--The outlook for 2011 remains positive, despite a negative
foreign currency development, particularly in the US Dollar and the
Euro, against the Swiss Franc.
--The Swatch Group will further generate dynamic and organic
sales growth in 2011 and continue investment in its distribution
and the expansion of its production capacities. The latter applies
to both standard products as well as new products which were
launched in the markets very successfully at the year-end of 2010,
such as the New Gent from Swatch, the Ladymatic from Omega and the
world exclusive "Type XXII 10 Hz" chronograph from Breguet. Other
product launches are planned for spring 2011.
--Sales in January 2011 are already exhibiting a positive trend
with double-digit growth in local currencies. The optimistic
expectations are supported by the Group's strategic positioning in
all market segments and its geographic presence throughout the
world.
-Zurich Bureau, Dow Jones Newswires, +41 43 443 80 47;
zurichdjnews@dowjones.com
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