Bathroom maker Qualceram Shires warned that profits would be lower as market conditions in the British market continue to deteriorate.
Today's warning confirms the cautious earnings outlook contained in the firm's interim results statement issued in September.
Qualceram's chief executive, John O'Loughlin, said the ceramic's industry has faced an increasing competition from low-cost Asia producers
"In saying this, we remain positive about the future and optimistic that 2006 will produce an improved performance for the group," he said.
Higher energy and transport costs and the sluggish UK housing market have also compounded the company's woes.
Qualceram said cost cuts and restructuring of its operations are "progressing satisfactorily" but that any efficiency gains will not emerge until next year.
The Irish market remains satisfactory, but competition has intensified driving down margins.