Crystal and china maker Waterford Wedgwood Plc said today it had cut its operating loss substantially and improved margins in the six months to the end of September.
Peter Cameron, Waterford Wedgwood
The news helped push the stock 12 per cent higher.
Costs were lower and the sales decline of recent years was arrested for the first time since 2001 so that sales were in line with the same period last year, the company said in a statement for its annual meeting.
The firm, best known for its Waterford crystal glassware and Wedgwood and Royal Doulton ceramics, reiterated its view from earlier this year that it would return to profitability in 2007.
"(We) have the people, we have the product and we have the cost structure," Chief executive Peter Cameron said.
Shares in the company, which is chaired by Irish billionaire Tony O'Reilly, were up 12 per cent at €0.047 by 1112 GMT on a little changed Dublin market.
The group, which is revamping itself following a prolonged slump in demand, said it was encouraged by a strong performance in September, especially at Waterford Wedgwood where sales were up 22 per cent in the United States, its biggest market.
"As a result, last month was Waterford Wedgwood's best September for three years. We remain optimistic that the improvement will continue in October."
In June, it said operating losses after exceptional items narrowed to €130.8 million ($164 million) in the year to end-March from €178.6 million a year earlier.
Group sales were up 10.4 per cent at €772.6 million due to the contribution of newly acquired business Royal Doulton.
Last year, Waterford Wedgwood announced plans to cut 1,800 jobs as part of its revamp - funded by issuing 100 million euros worth of new shares. The restructuring programme aims to take 90 million euros in costs out of the business annually.