GENEVA, August 15, 2008 (AFP) - Swatch Group, the world's biggest watchmaker, on Friday said sales in the first half grew 13.8 percent at constant exchange rates with strong demand from the Asian and American markets.

However, net profit for the first half fell 9.1 percent to 418 million Swiss francs (258 million euros, 380 million dollars) compared to the same period last year, reflecting the weakness of the US dollar.

'Asia and America achieved clear double-digit growth in local currencies, while sales in this segment in Europe grew at a rate only slightly above the double-digit mark,' it said in a statement.

It nevertheless expected a positive second half and that it would continue to invest in production.

'Despite all the negative reports of the financial sector and the increase in costs worldwide, the Group Management still expects sales and profitability to show solid positive development in the second half-year,' it said.

In July, chief executive Nick Hayek said the group expects to make record profits in 2008 despite a difficult global economic environment.

The Swatch Group comprises 18 brands including Omega, Rado, Breguet, Blancpain and Swatch.