Swiss retail prices have fallen 2% this year

GENEVA, SWITZERLAND – Logitech’s sale rose slightly and ABB sees healthy growth in orders and revenue, as third quarter financial reports for Swiss-based companies continue to show some resistance to pressure from the over-valued Swiss franc. Vaud-based Crea issued its revised GDP forecast Friday morning showing Swiss growth slowing from 0.7 percent this year to 0.4 percent in the first quarter of 2012.

Ed. note: TSR labels the result of Crea’s forecast a recession, but the more widely used American definition of recession calls for two consecutive quarters of negative growth.

Rare entry option into Swiss wealth management opens

Bank Sarasin, which has CHF100 billion under management, is now at the centre of an ownership struggle, reports Reuters. The bank focuses on managing money for the very rich, and its majority shareholder, unlisted Dutch Rabobank, is looking to sell for a good price, says the news agency, with Swiss banks Julius Baer and Raiffeisen leading the race.

Swiss GDP will contnue to inch up

And while the rate of Swiss growth is slowing down, GDP (gross domestic product) nevertheless will continue to rise, 1.9 percent this year and 0.8 percent in 2012, according to the BAK (Basel Economic Research Institute. Retail prices in Switzerland have reached their lowest level since 1993, according to BAK, as companies cut prices by more than 2 percent on average and margins are down.

Logitech slowly reviving

Logitech‘s forecast for its fiscal year (FY) 2012, which ends 31 March, remains unchanged, the company said in releasing its Q2 figures for FY 2012, with expected sales of $2.4 billion and operating income of $90 million. The company has moved back into the black after three months in the red: with  Q2 FY 2012 sales of $589 million, up 1 percent from $582 million a year earlier, although sales declined by 2 percent year over year when favourable exchange rates are not considered. Operating income was $23 million compared to $51 million
in the same quarter a year ago. Net income for Q2 FY 2012 was $17 million compared to net income of $41 million  in Q2 of FY 2011.

ABB calls last three months a “solid quarter”

Orders are up 12 percent and revenue growth 11 percent at ABB, which chief executive Joe Hogan qualified as “a solid quarter”, saying that “Our cost savings efforts again more than offset price pressure in power and we continued to build the order backlog, which will support growth in the coming quarters.”

Not-so gloomy forecast after all

Bern, Switzerland (GenevaLunch) – The Swiss State Secretariat for Economic Affairs (Seco) is forecasting higher GDP (gross domestic product) growth and lower unemployment for 2010, even though the economy is still weak and might dip at some point during the year.

The new forecast sees GDP growth of 1.4 percent, double the forecast made in December 2009. Seco has also adjusted its unemployment forecast to 4.3 percent, down from instead of 4.9 percent.

Seco also counsels that other countries’ national and private debt could weigh unfavorably against the Swiss economy. “Countries with above-average growth could be facing appreciation of their currencies,” says the report. The report concludes that “another strong appreciation of the Swiss Franc towards the Euro could have a harmful effect on exports.”

Zurich, Switzerland (GenevaLunch) – Economiesuisse has revised upwards its forecast for the Swiss economy for 2010. In June 2009 the umbrella organization for Swiss business had predicted a 2.9 percent drop in Swiss GDP (gross domestic product) for 2009 with a further drop of 0.8 percent in 2010. The group published revised figures Monday 23 November, saying it expects to see growth of 0.7 percent next year, and export growth of 3.8 percent after a year that has proved very difficult for some exporters.

Background: Economiesuisse lowers growth forecast, unemployment to climb, GenevaLunch, 15 June 2009