Timely boost in earnings for prestige watch maker

SWATCH Group AG, the world's largest watch maker, said sales rose 18 percent last year after Chinese, Indian and Middle Eastern customers bought luxury Breguet and Blancpain timepieces.

Sales increased to a record 5.94 billion Swiss francs (US$5.38 billion) from 5.05 billion francs in 2006, the Biel, Switzerland-based company said yesterday.

According to Bloomberg News, that beat the 5.81 billion-franc median of five analyst estimates. Swatch said it expects to report an "above-average" increase in profit when it releases full-year figures on March 19.

Swatch chairman Nicolas Hayek Sr said last month revenue reached a record in November.

"Hayek just keeps on delivering," said Christian Gattiker, head of equity research at Bank Julius Baer & Co, which owns Swatch shares.

"Growth is coming from the usual suspects, namely Russia and China, and I don't see it slowing anytime soon."

Swatch Group, which owns 17 brands besides its namesake, said it expects "the positive trend to continue" in spite of "turbulence" in markets.

"Orders at hand for the coming months also give reason to expect strong growth in the first half of the year," the company said.

Swatch's net income increased 20 percent a year on average in the three years through 2006. Analysts expect 2007 profit to have gained 23 percent, according to the average of 16 estimates compiled by Bloomberg.