Swatch H1 results, sales decline

The Swatch Group AG (SWGAF.PK), a Swiss manufacturer of watches and jewellery, Monday reported result before tax of CHF 225 million for the first half, lower than CHF 653 million in the comparable period last year, primarily due to drop in demand for luxury goods in China, including Hong Kong SAR and Macau SAR.

Operating results declined 17.1 percent to CHF 204 million from CHF 686 million a year ago.

Net results were CHF 136 million or CHF 0.52 per share, down from CHF 486 million or CHF 1.87 per share last year.

Sales for the period fell to CHF 3.445 billion from CHF 4.019 billion in the previous year.

Looking ahead, Swatch said in a statement, "The cost-cutting program introduced at the start of the year has begun to bear fruits. The full positive impact, particularly on results in the Production segment, will be felt in the second half of the year."(DPA)