Profits fall 50% at Waterford Wedgwood

Waterford Wedgwood said today it expects difficult trading conditions worldwide to continue through the first half of 2002 after…

Waterford Wedgwood said today it expects difficult trading conditions worldwide to continue through the first half of 2002 after it unveiled a halving in full-year pretax profits.

The maker of luxury ceramics and crystal glassware posted a full year pre tax profit before goodwill, exceptionals and investment writedowns, of €41.3 million for the year to December, down from €85.5 million earlier.

Manufacturing capacity is being reduced by the closure of its crystal plant in Stourbridge, England and further rationalisation is in progress at the group's other crystal and ceramics plants in Ireland, Britain and Germany, it said.

It added it wrote down to a market value of €2 million the group's investment in Royal Doulton which was acquired in November 1999 for €17.2 million as it announced that it has acquired a further 500,000 shares in Doulton bringing its total holding to 21.29 per cent.

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Total sales in the year to December were €1.012 billion, slightly down from €1.084 billion a year earlier.

After a restructuring provision of €61.8 million and the investment writedown, the loss for the year was €45.2 million.

The company is proposing a final dividend of 2.40 cents, unchanged from a year earlier, giving a total payout for the year of 3.10 cents versus 3.06 cents.

AFP