Waterford Wedgwood in the year to 5 April, 2008, made an operating loss of €180.9 million, compared with a loss of €17.1 million in the prior year. Excluding exceptional items, the operating loss was €56.7 million, compared with a loss of €14.9 million in the prior year. The reduction is primarily the result of a €69.7 million (9%) reduction in sales (at prevailing exchange rates) and a 2.2% point reduction in gross margins. The reduction in sales equates to a 5% decline at constant exchange rates. 

In the year to 5 April, 2008 there was a net charge of €124.2 million for exceptional items compared with a net charge of €2.2 million in the prior year. This amount primarily consists of non-cash impairment charges totalling €104.3 million (intangible assets of €82.7 million and plant and equipment of €21.6 million).

In the year to 5 April, 2008, EBITDA - earnings before interest, taxes, depreciation and amortization- (before exceptional items) was a profit of €8.8 million compared with a profit of €20.7 million in the prior year, and operating profit (before exceptional items) was €0.7 million compared with a profit of €12.3 million in the prior year. After exceptional items the operating loss was €21.9 million compared with a profit of €11.2 million in the prior year. 

Waterford's sales of €170.2 million were €29.2 million (15%) down at prevailing exchange rates and €13.2 million (7%) down at constant exchange rates, reflecting an adverse exchange impact on sales, predominantly US Dollar/Euro related, of €16.0 million. Supply chain issues caused by the well-publicised funding difficulties in the early part of the year resulted in product shortages across key sellers at critical times of the year, particularly during the Christmas period. Gross margins reduced due to the under recovery of manufacturing overheads as a result of significant excess capacity at the Kilbarry plant in Waterford, Ireland, particularly evident in the second half of the year.

In the year to 5 April, 2008, the Ceramics Group EBITDA (before exceptional items) was a loss of €22.4 million compared with a profit of €3.3 million in the prior year, and the operating loss (before exceptional items) was €39.1 million, compared to €18.0 million in the prior year. After exceptional items the operating loss was €138.4 million compared with a loss of €19.1 million in the prior year.

Ceramic's Group sales of €462.5 million were €39.0 million (8%) down at prevailing exchange rates and €21.4 million (4%) down at constant exchange rates. The well-publicised funding difficulties in the early part of the year restricted the supply of product out of the Barlaston factory in Stoke-on-Trent and also impacted on the Group's ability to secure production slots with sourcing partners. The closure of unprofitable UK retail outlets during the year was a further factor in the sales decline.

Waterford Wedgwood advises that sales at constant exchange rates for the three month period ending on 5 July, 2008 of €135.7 million were in line with the same period in the prior year.

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