Waterford Wedgwood has reported 'disappointing' pre-tax losses of €241.6m for the year ending April 5, 2008. This compares to a loss of €70.8m the previous year.
Revenues for the year were down 4.7% from €704.6m to €671.8m at constant exchange rates.
The company said its operating losses, after exceptional items, amounted to €180.9m compared to a loss of €17.1m the previous year.
Waterford Wedgwood said its sales and margin performance were negatively impacted by funding difficulties. It said the later than expected receipt of funding impeded its ability to manufacture, source and distribute its goods in time for the key Christmas trading period.
It said it also continues to 'suffer' from significant manufacturing presence in high cost locations. The company recently announced a strategic review of the Rosenthal business that may include the potential sale of its shareholding and/or the sale of all of a part of its assets.
Newly appointed chief executive David Sculley said that 2009 will be a pivotal year for Waterford Wedgwood. He warns that there are challenges ahead but says the company is approaching them with its eyes open.
'We now have a strong management team and a new set of financial disciplines in place,' he said.
'The core brands, Waterford, Wedgwood, Royal Doulton and Rosenthal are world renowned and are in remarkably good shape despite a number of difficult years. With the ongoing support of our shareholders and the trust of our customers, we plan to turn around the group which will lead to a profitable future,' he added.
The company's Waterford division reported an operating profit, before exceptional items, of €0.7m compared with a profit of€ 12.3 the previous year. Sales of €170.2m were down 7% at constant exchange rates. The impact of the dollar/euro exchange rate hit the company to the tune of €16m.
However, the division continues to gain market share in its biggest market - the US. The company said the focus for the year ahead is to start the process of reducing its cost vase while stabilising sales in challenging economic environment.
Waterford Wedgwood's ceramics division reported an operating loss, before exceptional items, of €39.1m compared with a loss of €18m the previous year. Sales - at constant exchange rates - were down 4% to €462.5m. The company said the priority for the group is to urgently restructure its cost base and follows the decision to further integrate the Royal Doulton and Wedgwood businesses.
Sales of W-C Designs and Spring were up 5% at constant exchange rates to €39.1m during the 12 month period. The division reported an operating loss of €7.7m, compared to a loss of €1.2m the prior year.
The group said it now intends to raise about €120m of additional equity by the end of the year.
Waterford Wedgwood said that sales in the three months to July 5 came to €135.7m, in line with the same time last year when calculated at constant exchange rates.
Sales at the Wedgwood porcelain unit rose 9% year on year in the three month period, driven by strong results in the US, the UK and Europe. Waterford Crystal sales dropped by just under 2% year on year.
