Waterford Wedgwood, the crystal and ceramics maker, has reported losses of €188.9m for the twelve months to the end of March. This compared to a losses of €258.1m the same time last year and reflects an improved operating performance in the second half of the year, lower exceptional charges and reduced finance costs and taxes.
The company's chief executive, Peter Cameron, said that the last financial year was a year of unacceptable losses for Waterford Wedgwood. However, he said he believes the company is beginning to see the benefits of a restructuring plan introduced last year.
Sales from continuing operations were up 10.4% to €772.6m as a result of the purchase of Royal Doulton.
The company also announced today a 3-for-13 rights, which is aiming to raise about €60m. Waterford said this will provide additional working capital while the company continues its restructuring programme and the planned restoration of the business to profitability.
The company's Waterford Crystal division reported a 6.6% drop in sales to €206.5m, due mainly to weaker than projected sales in the US. The section incurred an operating loss before exceptional items of €12.3m, a €5.4m improvement on the €17.7m loss incurred the previous year. Last year, the company closed its Dungarvan factory.
The ceramics group's sales of €527.8m were 20.5% higher, reflecting the acquisition of Royal Doulton. Excluding the deal, however, sales were down 6%, reflecting difficult trading market conditions in the US, UK and Japanese markets.
Waterford Wedgwood said that in the first two months of the current year, sales are at about the sale level as fiscal 2006 and the company's performance at operating profit level was well ahead of last year as the benefits of its restructuring takes effect.
'Fiscal 2006 was a year of unacceptable losses for Waterford Wedgwood,' commented group CEO Peter Cameron. 'However, we believe our transition back to profitability is gaining momentum given our new and exciting ranges,' he added.
'Taking into account the cost savings achieved under the restructuring programme and the new product and marketing initiatives, we are targeting a considerably improved performance this year,' he said.
