28
Nov
2011
2002 Results Of The Swatch GroupAlmost As Good As In 2001!
Following last February’s announcement of a turnover in 2002 of 4,063 million francs, down 2.8% compared to the previous financial year, the financial results of the Swatch Group for the same year were awaited at the end of March with a degree of anticipation. In view of the economic gloom that held sway all last year and exchange rates that were increasingly unfavourable to exporting industries, they can be regarded as highly satisfactory: the consolidated operating profit of the group, which is based in Biel, fell by only 1.9% to 632 million francs, while net profit came in at 494 million (-2.0%). On this basis, the board decided to propose to the general meeting of 28 May an increase in the dividend of 10%, to 0.22 franc per registered share, and 1.10 franc per bearer share.
By segment of activity, results progressed very differently: while the finished watch sector was generally in line with an operating profit down by 1.5% to 515 million, the manufacture of watch movements and components saw an increase in profits of 27.7% to 83 million (essentially the result of innovations in the products field and a higher share of mechanical watches), while electronic systems, confronted by very difficult conditions, particularly with regard to mobile phones, saw its operating profit fall by 24.4% to 59 million.
The Swatch Group is expressing confidence in the current year. It bases this positive attitude on the good start to consumer sales in the first two and a half months, and on the fact that operating profit for the same period is also showing an upward trend. It points out however "that it would not be very realistic, in the current context of geopolitical and economic tensions, to issue a precise forecast of profit and sales for the current year". Particularly with an upwardly mobile Swiss franc adding its weight to the aforementioned macroeconomic risks.