Waterford Wedgwood said yesterday that long-serving chief executive Redmond O'Donoghue will step down at the end of the month.
He is to be replaced by the company's US-based chief operating officer, Peter Cameron. The moves have been welcomed by analysts.
Mr Cameron, who headed the company's All-Clad cookware business before being appointed as the group's chief operating officer in June 2004, will take up his new position from September 1st.
Shares in the company rose by 5 per cent to €0.06 yesterday as the market welcomed Mr Cameron's appointment.
"It's excellent news," said Stuart Draper, head of research at Dolmen Stockbrokers.
"Peter Cameron was an excellent addition to the management team, his track record at All-Clad speaks for itself. It's a good step on the road to recovery."
Waterford Wedgwood has been struggling in recent years as its luxury goods business has been seriously affected by falling sales in the US and a weakening dollar.
The company, which has been forced to implement a restructuring plan which will see 1,800 jobs cut from the business globally, reported a pretax loss of €149 million for the year ended March, up from a loss of €45 million a year earlier.
Two recent rights issues to raise funds for the struggling company have further undermined investor confidence.
Analysts noted that significant challenges remain for the company, including the integration of the recently-acquired Royal Doulton, implementation of the cost-cutting programme and, most importantly, restoring revenue growth to the group's struggling crystal and ceramics brands.
"The category remains difficult and there is still a lot of rationalisation to be done on Royal Doulton," said NCB analyst, John Sheehan.
Mr Cameron said he was determined to make Waterford Wedgwood the low-cost operator in the markets in which the company operated.
"I am particularly excited at the prospect of continuing the process of making the Waterford Wedgwood ranges even more contemporary and relevant to today's consumer," Mr Cameron said.
Mr O'Donoghue, who is 62, will remain on the board as a non-executive director.
He will also become a special consultant to the company's chairman Sir Anthony O'Reilly and his brother-in-law, Peter Gouldandris, who between them control 51.4 per cent of Waterford's shares.
Sir Anthony described Mr O'Donoghue, who was appointed sales and marketing director of Waterford Glass in September 1985 before becoming chief executive of the glass business in 1996 and taking charge of the group in 2000, as "an outstanding servant" to the company.
"In the face of great adversity, especially the unprecedented fall in the US dollar, he has led our business with style, dignity and an unshakeable belief in the potential of our market-leading brands," Sir Anthony said.
