Waterford Wedgwood has announced a 20.4 per cent increase in sales from €730.5 million (£575 million) in 1998 to €879.6 million (£693 million) in 1999, surpassing forecasts. It has also announced the appointment of Mr Peter Goulandris, Dr Tony O'Reilly's brother-in-law, as executive chairman, ceramics.
Mr Goulandris, aged 51, who is deputy chairman of Waterford Wedgwood, will now be responsible for two group subsidiaries: Wedgwood, the British earthenware and china group, and Rosenthal, the German porcelain company. Both Wedgwood and Rosenthal recorded marginal drops in sales in the first half of 1999, but a recovery is understood to have taken place in the second six months. The positions of Mr Brian Paterson, chief executive officer of Waterford Wedgwood UK, and Mr Ottmar Kusel, chief executive of Rosenthal, will remain unchanged. They will have "undiminished responsibility", said Waterford Wedgewood's finance director, Mr Richard Barnes. They previously reported to Dr O'Reilly, but they will now report to Mr Goulandris. "The creation of the role of executive chairman of the ceramics division will bring added focus to strategic issues of Waterford Wedgwood's interests in the worldwide industry," the group said.
Mr Barnes noted the competitiveness of the ceramics industry, adding that "in the next 18 months, there is going to be a reformation of the industry in Europe" and Waterford Wedgwood wants to be in the forefront of that development. However, he said he was not hinting at an imminent acquisition.
Mr Goulandris said "Wedgwood and Rosenthal are well-situated as efficient producers and industry leaders to contribute substantially" to the group.
Mr Goulandris was appointed a non-executive director of Waterford Wedgwood in 1996 and became deputy chairman last year. He is a director of a number of companies, including Fitzwilton, and plays a significant role in the Goulandris family shipping business. Most of his shareholding in Waterford Wedgwood is held by companies controlled by the Goulandris family, Dr O'Reilly and others. The holdings of those companies, and his direct holding of more than 4 per cent, amounts to 24.7 per cent.
The latest sales figures announced before today's Frankfurt ceramics and crystal trade show include a contribution from AllClad, the US cookware company, acquired last year. Excluding this, the underlying growth was 9.8 per cent. The preliminary results will be announced on March 7th.
Chairman Dr O'Reilly said the sales figures confirm the strength of Waterford Wedgwood's strategy. "The group has performed strongly over the last 12 months in the face of some severe trading conditions. The strength and global reach of our brands and the acquisition of All-Clad reinforces our position in the luxury goods market and is an excellent platform to accelerate future growth."
Waterford Wedgwood said new product development, increased control of distribution and the ongoing integration of manufacturing facilities all contributed to the growth in 1999. The Rosenthal Bulgari collection has exceeded "all expectations". Sales of John Rocha at Waterford Crystal "were also up strongly and the summer launch of Jasper Conran at Stuart Crystal was an instant success". Wedgwood is to introduce ranges designed by Mr Paul Costelloe and Mr Nick Munro this year. All-Clad has announced the launch of a new line of cookware with Mr Emeril Lagasse, a leading US chef. And the appointment of Sarah, Duchess of York, as spokeswoman for Wedgwood in the US "has been particularly effective and beneficial". Her fee is understood to be in the region of £500,000.
