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[March 2002]
Waterford Wedgwood Records Reduced Sales and Profit for 2001
Full-year sales for Waterford Wedgwood were 1.012 billion euros compared to 1.084 billion euros in 2000. Operating profit and pre-tax profit (both pre-amortisation of goodwill, exceptional restructuring charges and investment write-down) were both down, from 110.3 million euros to 67.3 million euros and from 85.5 million euros to 41.3 million euros, respectively.Ceramic product sales broadly held 2000 levels, with the full-year addition of Hutschenreuther, acquired in August 2000, offsetting slower global demand, particularly in the second half of the year. Sales were 472.9 million euros (2000: 481.4 million euros). Margins were affected by slower core sales, product mix and the one-time effect of absorbing Hutschenreuther's first-half results. However, Hutschenreuther provided strong profits in the second half, and its integration with Rosenthal's operations will be complete by April 2002, one year ahead of schedule.
During 2001, Wedgwood substantially decentralised its management structure, providing significant cost savings in 2002. Short-time working and capacity reduction will continue to decrease supply chain costs and improve efficiency.
The Wedgwood brand grew 4% in Pan Asia and 3% in Europe. Waterford China sales in the USA were up 17%, which helped the Group's ceramic market share to reach 21.7%, a strong second position. Rosenthal group brand sales, helped by the full-year impact of Hutschenreuther, were up 11%.
The Board took the decision to write down to the market value (2 million euros) the Group's investment in Royal Doulton PLC. This investment was acquired in November 1999 for 17.2 million euros. The Group announced on 4 March 2002 that it had acquired 4,704,268 shares (approximately 5.66%) in Royal Doulton. It further announced on 6 March 2002 that it had acquired a further 500,000 shares. These shareholdings are further to Waterford Wedgwood's initial holding of 12,380,570 shares and brings the Group's total holding to 21.29%. After the restructuring provision of 61.8 million euros and investment write-down, the loss for the year was 45.2 million euros.
ENDS