Waterford Wedgwood unveils recovery plan

Waterford Wedgwood outlined a recovery plan today after it plunged to a full-year loss amid tough market conditions and the impact…

Waterford Wedgwood outlined a recovery plan today after it plunged to a full-year loss amid tough market conditions and the impact of dollar weakness.

The company, which posted a pre-tax loss of €45 million in the year to end-March after a profit the previous year of €7.2 million, said it had embarked on a plan to cut its debt and costs, free up capital and boost its marketing.

The firm said it had taken the first step in a "Plan for Growth" with this month's sale of its All-Clad cookware unit to French household appliance maker SEB for $250 million.

Waterford, which bought All-Clad for $110 million five years ago, said the cash would be used to pay down debt of around €383 million, so reducing debt servicing costs.

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Waterford Wedgwood, which has around half of its sales in the United States, reported a loss per share of 0.96 cent, before goodwill amortisation and exceptional items, against earnings per share of 4.23 cents last year.

Revenues dropped by nearly €120 million to €832 million, with crystal sales down 16.3 per cent and ceramics sales off nearly 12 per cent. Cookware sales were down nearly 18 per cent.

The firm, which has had a turbulent couple of years due to slumping consumer sentiment, plans no dividend for the past year.