Waterford Wedgwood reports €12.1m loss

Waterford Wedgwood has announced a pre-tax pre-exceptional loss of €12.1m in the six months to 30 September, compared with a profit of €24.5m in the year earlier.

The ISEQ listed company has cited a difficult trading period, adverse exchange rates and lower capacity utilisation as the main drivers of this loss.

First-half Sales fell to €405.8m ,down 3.7%, from €471.2m in the same period last year.

First-quarter sales, which were hampered by the war in Iraq and SARS fell 9 %, while second-quarter sales were equal to last year. September sales climbed 3 % at constant exchange rates.

"We are greatly encouraged by our improving sales trends, the signals that a meaningful recovery in US retail sales is starting to take hold, and the enhanced profit margins which should flow from our important restructuring and productivity programmes," said chairman Sir Anthony O'Reilly.

The company made €2m in cost savings in the first half and expects to make €14m savings in the second half.

The company also announced a new capital structure, to include a 3 for 11rights issue, bond and senior debt structure, with the average term of debt extended to 5.5 yrs.