Waterford warns of disappointing sales returns

Waterford Wedgwood has warned that its financial results for the year to the end of March will be below market expectations.

Luxury goods group's shares have fallen by more than 20% to three cent in Dublin's ISEQ.

The company said today that underlying sales were expected to be around 6% less than the previous year. It also said that margins would be lower.

It said it was "reviewing the actions required" to return the company to profit.

Waterford also said projected cost savings from its acquisition of Royal Doulton were likely to meet expectations.

Chief executive Redmond O'Donoghue said the company planned to deal with the situation by addressing its fixed costs base while investing in new products and marketing.