Swiss Franc Is Biggest Problem Says Swatch Chairwoman -Report
24 June 2011 - 7:42PM
Dow Jones News
The rising value of the Swiss franc is the biggest problem
facing Swiss watchmaker Swatch Group AG (UHR.VX), company
chairwoman Nayla Hayek said in an interview with Swiss newspaper
Tagesanzeiger published Friday.
The franc has risen from 0.75585 against the euro in early April
to 0.845308 this week as investors flock to the currency's safe
haven status amid fears of a Greek default
Ms Hayek said not enough has been done to curb the currency's
value.
"In Switzerland many people are sitting in a frozen state. No
one reacts, no one does anything, it's like a numbness," she said.
"We work, we achieve wonderful results and then the Swiss franc
eats it."
Hayek's comments mirror remarks by her brother Swatch Chief
Executive Nick Hayek in a newspaper interview earlier this month,
who said Swatch sales are down between CHF50 million and CHF60
million a month because of the strong franc.
Ms Hayek told the paper she "didn't know" if her son Marc Hayek,
who is on the company's management board and leads the Breguet and
Blancpain brands, would want to succeed her brother as CEO.
She also said Swatch's discussions with the Swiss antitrust
regulator to end its obligation to supply its Swiss-made watch
components globally was not designed to hurt rivals.
Swatch would "definitely not" base its decision to stop
supplying a watchmaker on whether they competed with its brands, Ms
Hayek said.
The company was happy to deliver to serious watchmakers "with
factories" she said.
"What we don't want any more are partners who in a crisis cancel
their entire order and endanger jobs and then come back later and
ask why the requested product cannot be delivered," said Ms
Hayek.
Newspaper website: www.tagesanzeiger.ch
-By John Revill, Dow Jones Newswires; +41 43 443 8042 ;
john.revill@dowjones.com
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