Swatch Group AG, the biggest maker of Swiss watches, said it expects "healthy" growth this year after 2013 earnings rose 17 per cent, boosted by compensation from Tiffany and Co from a legal battle over a failed alliance.

Operating income rose to 2.31 billion Swiss francs ($2.6 billion), the firm said. Swatch said it had “very good” watch and jewellery sales in January.

“These are strong results,” Allegra Perry, an analyst at Cantor Fitzgerald, said.

Tiffany was ordered to make a payment of about 400 million francs to Swatch in December, ending a two-year legal battle after the biggest maker of Swiss timepieces alleged the US jeweller blocked development of a partnership started in 2007.

Tiffany has said it honoured the terms of the alliance. – (Bloomberg)