Cost cutting Waterford halves losses

Crystal and china maker Waterford Wedgwood has announced it is in line to return to profit by the end of the current financial year.

The company's successful cost-cutting programme more than halved pre-tax losses for the year to March 31, which stood at €70.8 million (£47.7 million) down from €189.4 million (£127.5m) the previous year.

The Irish company, which also owns Royal Doulton, has closed factories in Stoke-on-Trent and Ireland and has axed 2,200 jobs over the past two years as part of its restructuring programme.

Waterford Wedgewood said it had identified "additional right-sizing opportunities" across the group under a fresh overhaul plan.

However, the company is looking to raise up to €200 million (£134.5 million) from shareholders to support the recovery of the business.

The group, which also has bases in Germany and Indonesia, said it was seeing "robust demand" for its products.

Waterford Crystal had a significant recovery with an operating profit of €20.7million (£13.9 million) - the first time in three years the company had actually returned an operating profit.

The company attributed Waterford Crystal's profit to the its reduced cost base, higher margins and a more contemporary product range through collaborations with high-profile designers.

The ceramics business, which includes Royal Doulton and Wedgwood, halved operating losses to €18 million (£12.1 million)

The company said its return to profits was due to a combination of its cost-cutting drive, new product launches, such as microwave and dishwasher-friendly Eternity China and tie-ups on new Royal Doulton lines with celebrities such as Gordon Ramsey.

© Independent Television News Limited 2007. All rights reserved.