Waterford Wedgwood announced this morning that its pre-tax profits for 2001 had halved to €41.3 million from €85.5 million the previous year, before restructuring charges. Operating profit was €67.3 million, down from €110.3 million in 2000.
Earnings per share dropped to 5.26 cent from 10 cent the previous year. The company is proposing a final dividend of 2.40 cents - the same as in 2000 - making a total dividend for 2001 of 3.10 cent.
Sales again exceeded €1 billion despite the difficult trading conditions, 6.7% below the record year in 2000. The luxury goods group was very badly impacted by the US attacks on September 11.
It said today that restructuring initiatives, announced last November, to offset weakening demand would yield substantial returns but would result in a charge of €61.8 million.
Sales of crystal products fell by 15% overall as the slowdown in the US economy rippled through most markets. However, sales of the John Rocha range were up 9% and the Jasper Conran Collection was up 15%.
Ceramics product sales held 2000 levels, with the full year addition of Hutschenreuther offsetting slower global demand, especially in the second half of 2001. The Wedgwood brand grew 4% in Asia and 3% in Europe. Waterford China sales in the US were up 17%. Rosenthal group brand sales were also up 11%.
Sales of the company's cookware and other operations were up 2%, including the sales of newly acquired linen company Ashling Corporation. Its contributions helped offset the impact of the US slowdown.
The company said the difficult trading conditions experienced last year showed no sign of improving this year. 'We expect a similar environment to continue through the first half. The Group's recent restructuring initiatives, however, are already yielding cost reductions and improving cash flow.'
Waterford said it remained committed to its objective of doubling the business within the next five years and said that selective brand acquisitions remained a core part of their growth strategy.
The company also confirmed that it had acquired a further half a million shares in British china maker Royal Doulton, increasing its stake in the company to 21.29%. It said it was writing down its investment in Royal Doulton to the market value of €2 million. The company was bought in 1999 for €17.2 million.
Shares in Waterford Wedgwood slipped in Dublin, closing down nine cent to 70 cent.
