Watch group in profit after bail-out

Press, 15 May 1985, Page 40

Watch group in profit after bail-out

NZPA-Reuter Bienne (Switzerland) Switzerland's largest watch group says it is back in profit less than two years after its banks saved the firm from bankruptcy in the most expensive industrial bail-out in Swiss history. Asuag-SSIH, makers of Omega, Longines and Rado and the trendy plastic “swatch,” reported a 1984 group net profit of JNZ22.44 million. In 1983 it lost $NZ146.3 million and in 1982 had a loss of $NZ287.76 million. The group’s chief executive, Mr Pierre Arnold, attributed the turnaround to the sale of unprofitable units, staff and production cuts, lower organisation

costs, and the creation of a new and less-fragmented product line. The popular “swatch,” introduced in 1983, was also a factor. Group sales rose only moderately to ?NZI.3 billion from FNZI.2 billion in 1983 in spite of almost doubled sales of the low-priced “swatch.” Costs from closing factories and liquidating unsold watches fell in 1984 and will fall further this year, he said.

The 1983 rescue cost Asuag-SSIH’s banks $NZ558.36 million. AsuagSSIH is the world’s third largest watch producer after Japan’s Seiko and Citizen Watch.