Waterford set for further restructuring

Crystal and china maker Waterford Wedgwood today unveiled plans to raise €100m as it looks to continue the revival of the business through a new restructuring programme.

The company, which also owns Royal Doulton, said it would raise the funds through an open offer of preference shares to Waterford’s shareholders.

The firm said it had spotted more opportunities for savings after Waterford’s first major restructuring in 2005 tackled losses at the group.

More than 2,100 staff have left the business since 2005 under the first savings drive in which Waterford closed its crystal factory in Dungarvan and a Stoke-on-Trent china factory. Another 140 people will leave in the next financial year.

Chief executive Peter Cameron said details of the new restructuring would be finalised in the next few weeks. He added that the 2005 restructuring was on track to make savings of €90m a year.

The news came as Waterford more than halved its pre-tax losses to €47.2m for the nine months to December 31 2006, compared with €118.1m the previous year.

Waterford also showed signs of improved trading with like-for-like sales for the first quarter of 2007 up 1% on last year, although overall sales for the period fell nearly 4% to €574m.

As well as streamlining the business, the company has embarked on marketing initiatives and launched new products in a bid to increase the appeal of its luxury goods.

It has signed up stars including chef Gordon Ramsay and designer Terence Conran to launch more modern lines, and introduced products such as Wedgwood’s Eternity China, which is much stronger than traditional china and able to stand up to use in microwaves and dishwashers.

The company said that Waterford Crystal made operating profits of €14.6m – compared to a €13.4m loss last time - following increased margins, the restructuring savings and cost controls.

The ceramics business, which includes Royal Doulton, slashed operating losses to €14m from 50m previously.