Richemont flags 30 percent rise in full-year net profit

ZURICH - Luxury goods group Richemont said its annual profit rose nearly a third from the previous year's 1.54 billion euros ($2 billion), helped by favourable currency swings.

"Favourable exchange rates at 31 March 2013 indicate a likely increase in net profit of approximately 30 percent compared to the prior year," Richemont said on Tuesday.

The maker of Cartier watches and Montblanc pens also said sales rose 14 percent in euros in the year ended March 31 and that operating profit climbed roughly 18 percent.

That would translate to roughly 2 billion euros net profit, which would be just ahead of analysts' average forecast of 1.928 billion euros, according to Thomson Reuters data.

Sales should top 10 billion euros, from 8.87 billion euros the previous year and compared with forecasts for about 10.15 billion euros.

"Net profit beats views, and it is comforting that there is not going to be a disappointment at EBIT level either," Zuercher Kantonalbank analyst Patrik Schwendimann said. Schwendimann, who downgraded the stock to market weight in January, upgraded the shares to overweight on the news.

The shares rose 2.7 percent in pre-market indications. Complete earnings are scheduled for May 16.

Swiss March watch exports fell 5.4 percent, after a 7.1 percent fall in February, when shipments to important markets Hong Kong and China saw double-digit declines.

In February, Richemont said sales had ground to a halt in the Asia-Pacific region in the fourth quarter, a lull some industry analysts believed was temporary.

Last week, French rival Louis Vuitton said sales in Europe were hit by a drop in demand, particularly from Asian tourists, while China had been sluggish with no sign of improvement.

Richemont said it made Tuesday's announcement to adhere to Swiss securities disclosure law.