Waterford Wedgwood losses triple

Beleaguered luxury goods maker Waterford Wedgwood today said its trading troubles had worsened after losses more than tripled last year.

The ISEQ-listed group, which said last month it was cutting 1,800 jobs, said the business had suffered major challenges amid falling demand and the impact of the weak US dollar.

Pre-tax losses widened to €149.2m in the year to March 31 from a deficit of €44.9m last time.

Waterford also revealed a further slowing in recent trading, saying same-store sales were likely to be 8% lower in its first quarter – compared with a decline of 6% over the year.

Chief executive Redmond O’Donoghue said: “The year just ended presented serious challenges to our group – a soft dollar, weak demand and below optimal throughput for our manufacturing operations.”

He said everybody was greatly disappointed by the figures showing operating losses of €82.2m compared with profits of €28.4m last time.

However, Waterford said its order books were strengthening, with substantial contracts won in recent weeks and due for delivery in the second half.

“Despite the fact that uncertainties remain, an improved sales trend is anticipated for the second half,” the group added.

It was also encouraged by a recent strengthening of the US dollar, which accounts for 40% of its sales.

Waterford, which acquired rival Royal Doulton in January, has seen its industry shrink dramatically in response to falling demand and the impact of low cost competition, mainly from Asia.

Last month’s job cuts announcement was part of a restructuring it said would help safeguard the company.