Swatch Reports Record CHF8.14 Billion 2012 Sales; January Off To Good Start

ZURICH-- Swatch Group AG (UHR.VX), the world's largest watchmaker, Thursday reported record full-year sales, showing that Switzerland's watch industry has remained relatively unscathed by global economic uncertainty.

Swatch, the owner of brands including Omega and Longines, as well as the eponymous plastic watches, said Thursday that its 2012 gross sales rose 14% to 8.14 billion Swiss francs ($8.8 billion).

The figure exceeded analysts' forecasts of CHF8.01 billion, and matched Chief Executive Nick Hayek's prediction of gross sales of more than CHF8 billion for 2012.

"Management expects good results for 2012 at operating profit and net income level, and the brands report a good start in the new year, with healthy growth again expected in 2013," Swatch Group said in a statement.

Swiss watch sales have remained relatively shielded from the economic downturn afflicting other industries, with the overall Swiss industry having reported record exports in the first 11 months of 2012. Swiss watch exports for the year to November totalled 19.64 billion francs, up 12.6% on year, and higher than a full-year record of 19.3 billion francs reached in 2011, according to figures released by the Swiss Customs Office in December.

But analysts expect the market to become tougher in 2013, as demand in Greater China, the industry's largest market, remains fragile, and inventories continue to be high.

Swatch, based in Biel, Switzerland, is due to report its earnings on Feb. 21.

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