ZURICH-- Swatch Group AG (UHR.VX) Tuesday reported a 25% increase in first-half net income as it boosted sales and cut costs, and said the prospects for the rest of the year are promising, and is targeting record sales of 8 billion Swiss francs.

MAIN FACTS:

- Sales in the Watches and Jewelry segment grew once again by a strong 16.7% to CHF3.40 billion.

- Group gross sales were up 14.4% to CHF3.85 billion, surpassing the record 2011 half-year figure.

- Operating profit increased 19.4% to CHF903 million, corresponding to an operating margin of 24.5%, compared with 23.7% in 2011.

- Net income reached CHF724 million up 25% on the first half of 2011, 19.7% on net sales, compared with 18.2% in 2011.

- The Group's prospects for the second half-year are promising, and several key brand events will highlight the second half of the year.

- The Group clearly sees more opportunities than risks for the future, despite some negative trends such as in the exchange rate and euro situation and a certain weakening in the high-end segment in parts of Greater China.

- Its goal remains to achieve a record CHF8 billion in sales for this year.

-Zurich Bureau, Dow Jones Newswires, +41 43 443 80 47; zurichdjnews@dowjones.com

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