ROSENTHAL, the German porcelain company, which last week approved the proposal to allow Waterford Wedgwood take a 9.1 per cent stake in the company, should return to the black this year. A small profit and zero growth in sales are projected for 1997 by the loss-making German company.

Rosenthal had been recording declining sales, so zero growth would represent an improved trend. Chairman, Mr Ottmar Kuesel, in a statement yesterday said a restructuring of the company would continue and this would involve the strategic alliance with Waterford Wedgwood.

The company's shareholders gave the green light to the alliance at a meeting last Friday. The stake will cost Waterford Wedgwood £3 million. Waterford Wedgwood has an option to acquire a further 15 per cent, at varying dates and prices, up to December 31st, 2000.