Swatch Group 2007 Net Income Surpasses $1 Billion
March 18, 08
The Swatch Group reported that its net income for 2007 exceeded CHF1 billion for the first time. Total net income reached CHF1.015 billion ($1.028 billion), and net sales totaled CHF5.646 billion ($5.722 billion), a 19.69 percent rise over 2006.
The company saw record performance in its core segment – watches and jewelry. Gross sales totaled CHF4.71 billion ($4.79 billion), a 20.4 percent rise over the previous year, and net sales were CHF4.456 billion ($4.531 billion).
Operating profit for the period increased by 24.7 percent. Swatch noted that the price adjustments implemented in the previous year had a positive impact on margins, partially compensating for the effects of further increases in the price of precious metals, diamonds and other raw materials.
From a geographic perspective, Asia, Europe and the
High demand for watches and jewelry helped to substantially boost sales in the production segment, although the group noted that a massive increase in demand for both mechanical movements and Swiss-made quartz movements over the past few years has posed tough challenges for production.