Waterford Wedgwood profits rise by 40%

Luxury goods group Waterford Wedgwood reported a rise of more than 40 per cent in operating profit today, but said market conditions…

Luxury goods group Waterford Wedgwood reported a rise of more than 40 per cent in operating profit today, but said market conditions remain difficult.

The company made operating profit of €40.6 million in the six months to end-September with pre-tax profit of €39.2 million, up from €11.8 million in the same period last year.

However, first-half sales fell 4.6 per cent to €471.2 million.

Group chief executive Mr Redmond O'Donohue said profits had risen substantially despite a dip in overall sales due to cost-cutting as part of a restructuring announced late last year, which included a 14 per cent cut in the workforce.

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He noted that sales in the September-October period were six per cent ahead of last year and said the group was cautiously optimistic about the forthcoming holiday sales season.

In the first half, crystal sales were down 6.4 per cent to €159 million, with sales of ceramics down 7.4 per cent at €211 million. Cookware sales, lifted by US brand leader Allclad, rose 37 per cent to €101 million in the period.

The company said it had reduced net debt by €54.5 million to €402 million, and cut inventory levels by €40 million.