Watchmaker Swatch says full-year 2009 net income dropped 9 percent

Swatch full-year net income down 9 pct

BIEL, Switzerland — Swatch Group AG, the world’s largest watchmaker, said Tuesday that net income dropped 9 percent last year, blaming higher gold prices and lower exports due to the global economic downturn and the strong Swiss franc.

The company said net income for 2009 was 763 million francs ($713 million), compared with 838 million francs the previous year.

Gross sales for the maker of brands such as Omega, Breguet and Longines fell 8.1 percent to 5.92 billion francs, adjusted for divestments.

Swatch said it was confident that sales and margins would improve in 2010, citing an “excellent start” to the year.

Shares closed up 4.8 percent at 281.50 francs ($264.47) on the Zurich exchange, almost double what they traded at a year ago.