Waterford warns of further losses

Crystal maker Waterford Wedgwood today forecast a greater than expected annual loss as sales fall and said it will cut over 300…

Crystal maker Waterford Wedgwood today forecast a greater than expected annual loss as sales fall and said it will cut over 300 jobs from its operations in Germany.

Managers expect revenue to drop 4 per cent to about €700 million at constant exchange rates, the company said in a trading statement.

Delays to investment by a Lazard Alternative Investments private-equity fund and chairman Tony O'Reilly caused difficulty in making enough crystal and china and distributing products to retailers in time for Christmas shopping, the company said.

"Receipt of this funding was assumed to be imminent when the group announced its interim results'' in November, Waterford said of the investment.

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Sales also were hurt by weaker consumer spending in the US and the UK, where house prices are slumping.

It probably will lose money before interest, taxes, depreciation, amortization and one-time items in the fiscal year ending next month, and figures will be "substantially" below analysts' estimates.

A restructuring programme at its Rosenthal porcelain division will result in over 311 job losses in Germany, Waterford said.

The plan was to step up automation, turning over some activities to other companies and reallocating production between two German plants, it said. The cuts will save €12.8 million a year.

Waterford was unchanged at €1.9 this morning on the Dublin market.