GENEVA – Swatch Group AG, the world%27s largest watchmaker, reported a 54 percent rise in half-year net profit Wednesday as sales recovered from a slump during the global economic downturn.
Despite a strong Swiss franc and continued high gold prices, Swatch said it managed to increase net profits to 465 million francs ($447 million) from 301 million in the same quarter last year.
Sales of its timepieces, which include brands such as Omega, Breguet and Longines, rose 22 percent to 2.87 billion francs.
Analysts at Zuercher Kantonalbank said the company, which posts earnings only every six months, beat expectations in all important categories. Shares in Swatch rose 4.2 percent to close at 341.40 francs on the Zurich exchange.
The company was shaken by the sudden death in June of its founder and longtime chairman, Nicolas Hayek. His daughter, Nayla Hayek, has since taken on the role of chairwoman, while son Nick Hayek is the company%27s chief executive.
Swatch — based in Biel, Switzerland — said it expects "a strong result" for the second half of 2010.