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Waterford Wedgwood PLC, "Waterford Wedgwood", Record Interim Results for the Six Months ended 30 June 2000.



Business Editors

BARLASTOWN STOKE-ON-TRENT Stoke-on-Trent, city (1991 pop. 272,446) and district, Staffordshire, W central England. Stoke-on-Trent forms the bulk of the area known as the Potteries. Situated in a coal field, the city is the center of the Staffordshire pottery-making industry. , England--(BUSINESS WIRE)--Aug. 23, 2000

             WATERFORD WEDGWOOD PLC ("WATERFORD WEDGWOOD")

     Record Interim Results for the Six Months ended 30 June 2000
   ----------------------------------------------------- -----------
                             Six Months to Six Months to
                              30 June 2000  30 June 1999
                              euro million  euro million    % change
    Sales - total                    447.0         342.6         30%
       - crystal                     178.0         150.4         18%
       - ceramics                    202.7         171.4         18%
       - other                        66.3          20.8        219%
    Operating profit(a)               29.5          21.3         38%
    Pre-tax profit(a)                 18.2          13.9         31%
    Earnings per share(a)            2.24c         1.73c         30%
    Dividend per share               0.66c         0.57c       15.5%
    ----------------------------------------------------- -----------
    (a) Before goodwill amortisation


-- Record sales up 30% to euro447.0 million -- Record operating profit Operating profit (or loss)

Revenue from a firm's regular activities less costs and expenses and before income deductions.


operating profit

See operating income.
 up 38% to euro29.5 million -- Record pre tax profit of euro18.2 million, up 31% -- Earnings per share up 30% to 2.24c: compound growth of 13% per

annum Noun 1. annum - (Latin) year; "per annum"
Latin - any dialect of the language of ancient Rome

twelvemonth, year, yr - a period of time containing 365 (or 366) days; "she is 4 years old"; "in the year 1920"
 over past five years -- Acquisition of Hutschenreuther Hutschenreuther is the name of the family that established the production of porcelain in Northern Bavaria, in 1814. Hutschenreuther was a trend-setter and enabled Germany to gain an excellent reputation in the European porcelain industry.  brand for euro10.2 million

- earnings enhancing in first year

- increases Waterford Waterford, county, Republic of Ireland
Waterford (wô`tərfərd), county (1991 pop. 91,624), 710 sq mi (1,839 sq km), S Republic of Ireland. The county seat is the port town of Waterford.
 Wedgwood's market share in Germany Germany (jûr`mənē), Ger. Deutschland, officially Federal Republic of Germany, republic (2005 est. pop. 82,431,000), 137,699 sq mi (356,733 sq km).  to over

33%

- improves Rosenthal's capacity utilisation and margins
-- Waterford sales momentum continues

-- Recovery in Asian and Japanese markets with Wedgwood ceramic sales increased
by 78% and 15% respectively


-- US growth continues with significantly increased sales in all

brands -- All-Clad All-Clad Metalcrafters are manufacturers of premium cookware.

All-Clad was established in 1968 after founder John Ulam discovered a unique process that uses a combination of heat and pressure to bond different metals into “sandwiched” sheets.
 achieved outstanding six month sales of euro43.2 million,

up 40% -- Current trading remains buoyant Buoyant

The term used to describe a commodities market where the prices generally rise with ease when there are considerable signals of strength.

Notes:
These types of markets can be very volatile as the prices are rapid to rise and fall with investor sentiment.


"These record results consolidate a decade of sustained profitable growth for Waterford Wedgwood Waterford Wedgwood is a group of companies head quartered in Ireland, who specialize in manufacturing high quality china, porcelain and glass.

The group companies include:
  • Rosenthal AG
  • Royal Doulton
  • Waterford Crystal
  • Wedgwood
  • Cashs of Ireland
 and highlight the success we have achieved in creating one of the world's leading luxury lifestyle brand companies.

"With our increasing portfolio of prestige brands Prestige Brands, Inc. NYSE: PBH is a company that manufactures personal care and home cleaning products. It was formed by the merger of Medtech Products, Inc., Prestige Brands International, and The Spic and Span Company. The company is headquartered in Irvington, New York.  all performing strongly across the globe, we are well positioned to generate future profitable growth in decades to come."

Dr Anthony J F O'Reilly

Chairman

23 August 2000

Enquiries:

Waterford Wedgwood Tel: (today) 0498 843276 Richard Barnes Richard Barnes could be
  • Richard Barnes, a London politician
  • Richard Barnes, an Australian journalist
  • Richard Barnes, a musician
  • Richard Barnes, a 16th-century Bishop of Durham
  • Richard Barnes (1805-1846), a Newfoundland businessman and politician
, Group Finance Director Tel: (thereafter) + 44 1782 282299

College Hill Associates (UK and Europe Europe (yr`əp), 6th largest continent, c.4,000,000 sq mi (10,360,000 sq km) including adjacent islands (1992 est. pop. 512,000,000). ) Tel: + 44 207 457 2020 Kate n. 1. (Zool.) The brambling finch.  Pope / James Henderson James Henderson may refer to:
  • James Pinckney Henderson, first governor of Texas.
  • James Wilson Henderson, fourth governor of Texas.
  • James Henderson (musician), musician.
  • James Henderson (Canadian politician), politician from Alberta, Canada.


Dennehy Associates (Ireland Ireland, Irish Eire (âr`ə) [to it are related the poetic Erin and perhaps the Latin Hibernia], island, 32,598 sq mi (84,429 sq km), second largest of the British Isles. ) Tel: + 353 1 676 4733 Michael Michael, archangel
Michael (mī`kəl) [Heb.,=who is like God?], archangel prominent in Christian, Jewish, and Muslim traditions. In the Bible and early Jewish literature, Michael is one of the angels of God's presence.
 Dennehy

Vorhaus Public Relations public relations, activities and policies used to create public interest in a person, idea, product, institution, or business establishment. By its nature, public relations is devoted to serving particular interests by presenting them to the public in the most  (United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. ) Tel: + 212 554 7433 Robbie Robbie may refer to:
  • Robbie (short story), by Isaac Asimov
  • Robbie Williams
  • Robbie Robertson
  • Robbie McEwen
  • Robbie Coltrane
  • Robbie Fowler
 Vorhaus / Abbe Ruttenberg

The Interim Results presentation is available on the Waterford Wedgwood Website www.wwreview.com

Waterford Wedgwood plc

Chairman's Statement

I am delighted to report that Waterford Wedgwood achieved record group sales Group sales

Block sale (of large amounts) of securities to institutional investors.


group sales

The distribution of a new security issue to institutional clients.
 in the first six months of 2000, building upon a remarkable decade of sustained profitable growth. This represents the strongest growth in the Group's history, following our last year's record-breaking Adj. 1. record-breaking - surpassing any previously established record; "a record-breaking high jump"; "record-breaking crowds"
best - (superlative of `good') having the most positive qualities; "the best film of the year"; "the best solution"; "the best time for
 full year increase of 20%. Waterford Wedgwood's continuing success confirms last year's achievement as heralding an era in which our Group begins to reap the accumulating benefits of our strategic planning Strategic planning is an organization's process of defining its strategy, or direction, and making decisions on allocating its resources to pursue this strategy, including its capital and people. , capital investment and brand acquisitions.

Since 1991, we have successfully built one of the world's leading luxury lifestyle brand companies under the Waterford Wedgwood banner, including Waterford, Wedgwood, Rosenthal Rosenthal is a name of German origin, meaning rose valley, and may refer to:
  • Rosenthal, Hesse, in the Waldeck-Frankenberg district
  • Rosenthal (Berlin), a part of Berlin, Germany
  • Rosenthal (Saxony), a part of Ralbitz-Rosenthal
, All-Clad, Marquis and now Hutschenreuther. Our momentum shows every sign of continuing, as we acquire luxury brands, as conditions improve in some of our most important world markets, particularly Asia and Europe, and as our brands continue to gain market share.

Financial Results

In the first half of 2000, Waterford Wedgwood's group sales grew to Euro447.0 million (1999: Euro342.6 million), an increase of 30% and operating profit increased by 38% to a record-breaking Euro29.5 million (1999: Euro21.3 million), clearly demonstrating the sustainability of our growth. Group pre-tax pre-tax adjanterior al impuesto

pre-tax adjavant impôt(s)

pre-tax adjal lordo d'imposta 
 profit before goodwill amortisation Noun 1. amortisation - the reduction of the value of an asset by prorating its cost over a period of years
amortization

reduction, step-down, diminution, decrease - the act of decreasing or reducing something

2.
 increased by 31% to Euro18.2 million (1999: Euro13.9 million).

Earnings per share before goodwill amortisation increased by 30% to 2.24c; this represents a compound growth of 13% in the past five years. The Board of Directors is proposing an interim dividend of 0.66c (1999: 0.5714c), up 15.5%, to be paid on 1 December December: see month.  2000 to shareholders on the register on 13 October October: see month.  2000. A scrip dividend scrip dividend

An unusual type of dividend involving the distribution of promissory notes that call for some type of payment at a future date. Scrip dividends generally signal that a firm is short of cash. Compare liability dividend.
 alternative will be available to shareholders.

Acquisition of Hutschenreuther brand

Continuing our strategy of building a group of prestige brands and optimising the efficiency of our business operations Business operations are those activities involved in the running of a business for the purpose of producing value for the stakeholders. Compare business processes. The outcome of business operations is the harvesting of value from assets , Waterford Wedgwood, through its German subsidiary Rosenthal, has acquired the Hutschenreuther brand for a consideration of Euro10.2 million. The consideration represents 20% of Hutschenreuther's 1999 sales of Euro50 million. After including working capital requirements Capital requirements

Financing required for the operation of a business, composed of long-term and working capital plus fixed assets.
 and investment associated with the integration of Hutschenreuther, the cash payback Payback

The length of time it takes to recover the initial cost of a project, without regard to the time value of money.
 is projected to be three years. This important acquisition is earnings enhancing from year one.

Waterford Wedgwood has acquired the brand, current inventory and the intellectual property rights as well as the lease of Hutschenreuther's five distribution outlets. Hutschenreuther will be integrated into Rosenthal's manufacturing facilities within two years. The Bavarian Ba·var·i·an  
n.
1. A native or inhabitant of Bavaria.

2. The High German dialect of Bavaria and Austria.



Ba·var
 government has agreed to provide the Group with operational grants to assist with the integration.

The integration of the Hutschenreuther brand into Rosenthal's manufacturing facilities will be materially beneficial to Rosenthal through increased capacity utilisation and improved margins. Through the acquisition, Rosenthal has captured the largest single share of the German market - over 33% - and increased its scale by approximately one-third. This will further improve Rosenthal's operating efficiency in the long term.

Crystal (40% of Group sales)

Our phenomenal success of 1999 continued through the first half of 2000 with Group crystal sales up 18% to Euro178 million and Waterford brand sales increasing by 21% overall, with sales in the US up 6%, UK up 10%, Ireland up 18% and Australia up 23%.

New product development continues as the key driving force of our growth and new products will account for 40% of crystal sales this year. "Gifts of Expression", an innovative crystal giftware range which will be launched this autumn, is a particularly exciting prospect. On top of the success of our new product, we have also been able to increase sales of traditional products, clearly demonstrating the strength of our core business.

Line and brand extensions continue to drive sales, with John Rocha John Rocha (born 23 August 1953, Hong Kong) is an Irish fashion designer of Chinese and Portuguese descent. He moved to Ireland after graduating from the Croydon School of Art, London.  sales up 37% to Euro5 million and Jasper Conran Jasper Conran (born on 12 December 1959.) is a leading English fashion designer. He is the son of the designer Sir Terence Conran and the author Shirley Conran. Education
He was educated at Bryanston School in the 1970s. He also studied in New York, U.S.
 sales ahead of expectations at Euro1.7 million. Overall, Waterford line and brand extensions were worth approximately Euro38 million at retail - a year on year increase of over 80%.

These strategies will continue to attract new consumers to our brands as well as keep existing customers loyal. With continued sales momentum in 2000, an ever wider brand awareness, and success well spread by market and by product, we will continue to advance sales and profits.

Ceramics ceramics (sərăm`ĭks), materials made of nonmetallic minerals that have been permanently hardened by firing at a high temperature, or objects made of such materials.  (45% of Group sales)

Outstanding progress was made in 2000, with ceramics sales up 18% to Euro202.7 million and within this, Wedgwood brand sales up by 22%.

Sales in the all-important US market were up 15%, a highly encouraging development due to continuing new product introductions and to the energetic promotional efforts of Sarah, Duchess of York Sarah, Duchess of York (born Sarah Margaret Ferguson, 15 October 1959) is the former wife of Prince Andrew, Duke of York, fourth in line to the British throne. She is a former member of the British Royal Family and the mother of Princess Beatrice and Princess Eugenie, who . The recovery taking place in the Asian and Japanese markets significantly enhanced Wedgwood's sales. These increased by 78% and 15% respectively, demonstrating the success of our strategic investment in new products and new retail environments in Japan. All markets were ahead of last year with Continental Europe Continental Europe, also referred to as mainland Europe or simply the Continent, is the continent of Europe, explicitly excluding European islands and, at times, peninsulas.  up 15%, UK and Ireland up 3% and Australia up 16%.

Wedgwood is well advanced on the repositioning repositioning Laparoscopic surgery The changing of a Pt's position during a procedure to improve access or visualization of the operative field, which may be linked to complications, as it changes anatomic planes of operation. Cf Laparoscopic surgery.  of its brand to reflect the core values of "Authentic English Style." This includes a new brand advertising campaign, stunning new retail fixturing and new products which meet the consumer demand for "special casual" and exciting design. New collections by designers Nick Munro and Paul Costelloe have brought freshness, excitement and a very positive customer response.

The Rosenthal brand has seen a strong improvement during the first half of 2000, with an increase in sales of 5%, despite the continuing difficult conditions in its home market. Rosenthal's operations in the US increased sales by 29% with the continued focus on design orientated o·ri·en·tate  
v. o·ri·en·tat·ed, o·ri·en·tat·ing, o·ri·en·tates

v.tr.
To orient: "He . . .
 product ranges accelerating this sales momentum. Rosenthal has successfully launched several new product ranges as well as benefiting from the continuing success in sales of its sought-after Bvlgari and Versace luxury ranges.

With the acquisition of Hutschenreuther, a marvellous German brand and previously a significant rival, the Group has vastly increased its market share in Germany to over 33% and is certain to benefit strongly from the restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics).  of this crowded market.

Other Products (15% of Group sales)

Sales in this category were Euro66.3 million, an increase of 219%, primarily reflecting the acquisition of All-Clad. The launch of our Wedgwood cutlery cutlery, various types of implements for cutting, preparing, and eating food. In addition to different kinds of knives and the steels to sharpen them, the term usually encompasses forks and spoons.  and Waterford Fine Jewelry jewelry, personal adornments worn for ornament or utility, to show rank or wealth, or to follow superstitious custom or fashion.

The most universal forms of jewelry are the necklace, bracelet, ring, pin, and earring.
 collections exceeded expectations. We will continue to enhance our world class brand names with appropriate product diversification Diversification

A risk management technique that mixes a wide variety of investments within a portfolio. It is designed to minimize the impact of any one security on overall portfolio performance.

Notes:
Diversification is possibly the greatest way to reduce the risk.
 and development.

All-Clad - acquired in June 1999 - made a significant contribution to the Company's half year results and achieved outstanding first half sales of Euro43.2 million - up 40%. America's foremost luxury cookware brand has already gained significant benefits from joining the Group's strong American organisation. The launch of the new Emeril Lagasse Emeril John Lagasse (born October 15 1959, Fall River, Massachusetts, U.S.) is an American celebrity chef, restaurateur, television personality, and cookbook author. A regional James Beard Award winner, he is perhaps most notable for his Food Network shows Emeril Live  cookware range has proven exceedingly ex·ceed·ing·ly  
adv.
To an advanced or unusual degree; extremely.


exceedingly
Adverb

very; extremely

Adv. 1.
 successful with sales of Euro2.2 million and has significantly broadened All-Clad's presence in the US cookware market. The planned expansion of All-Clad outside the US will provide an excellent platform to accelerate future growth.

Strategic Initiatives

Today Waterford Wedgwood is among the world's leading luxury lifestyle companies. We believe that the strength of our core brands, the design, quality and craftsmanship Craftsmanship
Alcimedon

a first-rate carver in wood. [Rom. Lit.: Vergil Eclogues, iii. 37.]

Argus

skillful builder of Jason’s Argo. [Gk. Myth.: Walsh Classical, 29]

Athena

(Rom.
 of our products and our clear strategy for growth, will enable us to continue to achieve ever-growing sales and profits.

We have increased our focus on our distribution network, nurturing and developing our distribution channels.

Our world class brands have strong e-commerce e-commerce, commerce conducted over the Internet, most often via the World Wide Web. E-commerce can apply to purchases made through the Web or to business-to-business activities such as inventory transfers.  appeal and we have a focused internet strategy in place. Alongside our corporate website, we are working towards the creation of a carefully considered e-commerce capability in 2001.

Summary

The first half of 2000 was one of significant progress for the Group. I want to take this opportunity to offer my sincere gratitude Gratitude
agrimony

traditional symbol for gratitude. [Flower Symbolism: Flora Symbolica, 172]

Androcles

because he had once extracted a thorn from its paw, the lion refrained from attacking Androcles in the arena. [Rom. Lit.
 to employees around the world. Thanks to their skills and total commitment, Waterford Wedgwood has not only achieved a decade of sustained profitable growth, it has broken every record in our corporate history for sales and profits yet again in this first half of 2000.

Waterford Wedgwood has grown its core business and now overshadows its competition. The Group has made an acquisition in each of the last three years and with gathering pace improves its financial performance consistent with the luxury lifestyle brands company it has become.

Current trading remains buoyant. I look forward to the rest of 2000, and to the years ahead, with great confidence and genuine enthusiasm.

Dr Anthony JF O'Reilly

Chairman

23 August 2000


                        WATERFORD WEDGWOOD PLC

                 Consolidated Profit and Loss Account

                                      6 months ended   12 months ended
                                         (unaudited)       (audited)
                                    30.06.00   30.06.99     31.12.99
                             Notes    euro m     euro m      euro m
Sales by category
Crystal                                178.0      150.4       395.2
Ceramics                               202.7      171.4       396.8
Others                                  66.3       20.8        87.6
----------------------------------------------------------------------
TOTAL GROUP SALES                      447.0      342.6       879.6
----------------------------------------------------------------------
Group operating
profit before
goodwill amortisation                   29.5       21.3        86.1
Goodwill amortisation                   (2.7)      (0.5)       (3.2)
----------------------------------------------------------------------
GROUP OPERATING PROFIT                  26.8       20.8        82.9
Net interest payable                   (11.3)      (7.4)      (17.4)
----------------------------------------------------------------------
Profit on ordinary
activities before taxation              15.5       13.4        65.5
Taxation on profit
on ordinary activities                  (2.6)      (2.0)       (9.4)
----------------------------------------------------------------------
Profit on ordinary
activities after taxation               12.9       11.4        56.1
Minority interests                       0.8        0.7         0.9
----------------------------------------------------------------------
Profit attributable
to members of the
parent company                          13.7       12.1        57.0


Dividends                      3        (5.1)      (4.2)      (19.1)
----------------------------------------------------------------------
Retained profit
for the period                           8.6        7.9        37.9
----------------------------------------------------------------------
Earnings per
ordinary share
before goodwill
amortisation                   4        2.24c      1.73c       8.26c
Earnings per
ordinary share                 4        1.87c      1.66c       7.82c


                        WATERFORD WEDGWOOD PLC

                      Consolidated Balance Sheet

                                                 As at          As at
                                  Notes       (unaudited)     (audited)
                                          30.06.00  30.06.99  31.12.99
                                            euro m   euro m    euro m
Fixed assets:

Intangible assets                     5      102.0    107.1     104.8
Tangible assets                              266.1    239.9     259.5
Financial assets                              23.3      7.1      22.6
----------------------------------------------------------------------
                                             391.4    354.1     386.9
----------------------------------------------------------------------
Current assets:

Stocks                                       309.3    266.7     238.8
Debtors                                      156.5    150.0     167.0
Cash and deposits                             53.4     46.3      87.4
----------------------------------------------------------------------
                                             519.2    463.0     493.2
Creditors (amounts
falling due within
 one year)                                  (166.7)  (166.1)   (202.3)
----------------------------------------------------------------------
Net current assets                           352.5    296.9     290.9
----------------------------------------------------------------------
Total assets less
 current liabilities                         743.9    651.0     677.8
Creditors (long
 and medium term debt)                      (442.8)  (398.4)   (396.6)
Other long term
creditors                                    (32.3)   (36.5)    (33.5)
Provisions for
 liabilities and charges                      (9.8)    (8.5)     (8.6)
----------------------------------------------------------------------
                                             259.0    207.6     239.1
----------------------------------------------------------------------
Capital and reserves:

Called up share capital                       54.2     56.5      56.6
Share premium account                        176.9    175.8     176.7
Revaluation reserve                           10.8     10.8      10.8
Revenue reserves                              12.1    (38.5)     (8.1)
Capital conversion reserve fund                2.6      -         -
----------------------------------------------------------------------
Shareholders' funds -
equity interests                             256.6    204.6     236.0
Minority interests -
equity interests                               2.4      3.0       3.1
----------------------------------------------------------------------
                                             259.0    207.6     239.1
----------------------------------------------------------------------


                        WATERFORD WEDGWOOD PLC

                        Consolidated Cash Flow

                                               6 months      12 months
                                                 ended          ended
                                              (unaudited)     (audited)
                                          30.06.00  30.06.99  31.12.99
                                           euro m    euro m    euro m

Operating profit                            29.5       21.3      86.1
Depreciation                                19.5       18.8      37.9
Working capital                            (74.4)     (51.8)      9.2
----------------------------------------------------------------------
Cashflow from operations                   (25.4)     (11.7)    133.2
Restructuring                               (3.5)     (19.8)    (32.3)
Interest                                   (11.3)      (7.4)    (17.4)
Capital expenditure (net)                  (26.8)     (11.0)    (41.8)
Issue of treasury shares                     8.6        -         -
Taxation paid                               (9.2)      (1.5)     (5.2)
Dividends paid                             (13.1)     (12.8)    (17.2)
Other                                       (3.5)      (3.0)    (17.0)
----------------------------------------------------------------------
Net Group cashflow                         (84.2)     (67.2)      2.3
Investment in Royal Doulton                  -          -       (17.3)
Acquisition of subsidiaries                  -       (106.0)   (106.0)
Opening debt                              (311.8)    (190.8)   (190.8)
----------------------------------------------------------------------
Closing debt                              (396.0)    (364.0)   (311.8)
----------------------------------------------------------------------


                        WATERFORD WEDGWOOD PLC

            Statement of total recognised gains and losses

                                     6 months               12 months
                                       ended                  ended
                                    (unaudited)             (audited)
                                30.06.00    30.06.99         31.12.99
                                  euro m       euro m         euro m

Profit for the period               13.7         12.1          57.0
Exchange translation
effect on net overseas
investments                          0.6         16.5          16.5
----------------------------------------------------------------------
Total recognised
 gains for the year                 14.3         28.6          73.5
Scrip dividend                       2.4          -             0.4
Dividend                            (5.1)        (4.2)        (19.1)
Issue of treasury shares             8.6          -             -
New share capital
subscribed                            0.4          0.2           1.2
Shareholders' funds
at beginning of period              236.0        180.0         180.0
----------------------------------------------------------------------
Shareholders' funds
at end of period                    256.6        204.6         236.0
----------------------------------------------------------------------


Notes to the Interim Financial Statements

1. Basis of preparation of Interim Financial Statements

This interim statement has been prepared applying the accounting

policies described on page 13 of the 1999 Accounts.

The results for six months ended 30 June 2000 have been reviewed

by PricewaterhouseCoopers. The results for the twelve months ended

31 December 1999 are in abbreviated form and have been extracted

from the Accounts which have been filed with the Registrar See domain name registrar.  of

Companies. The Auditors' Report on those accounts was unqualified.

2. Exchange Rates

The exchange rates used between the euro and the principal

currencies in which the Group does business were as follows:

                            Profit and loss transactions
                          6 months ended         12 months ended
                     30.06.00       30.06.99         31.12.99

 U.S. Dollar           $0.96          $1.09            $1.06
 Sterling        (pound)0.61    (pound)0.67      (pound)0.66
 Yen                 Y102.65        Y129.04          Y121.33


                                 Balance sheet as at
                       30.06.00       30.06.99        31.12.99
 U.S. Dollar             $0.95          $1.03           $1.00
 Sterling          (pound)0.63    (pound)0.65     (pound)0.62
 Yen                   Y100.20        Y124.03         Y102.93


3. Dividends

                                    6 months ended   12 months ended
                                  30.06.00   30.06.99   31.12.99
                                   euro m     euro m     euro m
         Paid:

         1999 interim dividend          -         4.2       4.2
         1999 final dividend            -         -        14.9
         Adjustment relating
          to 1999 final dividend(a)     0.2       -         -
         Proposed:

         2000 interim dividend          4.9       -         -
         ------------------------------------------------------
                                        5.1       4.2      19.1
         ------------------------------------------------------


(a) This adjustment reflects the difference between the

estimated exchange rate used to calculate dividend payable

and the rate prevailing when the dividend was paid.

It is proposed to pay the interim dividend of 0.66 cents per

share (1999: 0.5714 cents) on 1 December 2000 to all

shareholders on the register at the close of business on 13

October 2000. Shareholders will receive the dividend on their

ordinary shares (from Irish sourced profit) unless they elect

to receive their dividend on their income shares (from UK

sourced profit). Elections, once submitted, remain in force

unless or until cancelled by the shareholder. It is also

proposed to offer a scrip dividend alternative with this

dividend and to post scrip dividend election forms to

shareholders on 26 October 2000. The last date for receipt of

scrip dividend mandates/ revocations will be 17 November 2000

and the first date for dealing in new stock units is 1

December 2000.

4. Earnings per Ordinary Share

The calculation of earnings per ordinary share is based on 732.2

million shares being the weighted average number of shares in

issue during the six months ended 30 June 2000 (1999: 728.2

million). On the face of the consolidated profit and loss account,

earnings per share are shown both before and after goodwill

amortisation. Fully diluted earnings per share diluted earnings per share

An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of
 are not materially

different to the reported earnings per share.

5. Intangible Assets Intangible Asset

An asset that is not physical in nature.

Notes:
Examples are things like copyrights, patents, intellectual property, and goodwill. These are the opposite of tangible assets.
 - Goodwill

                                                   euro m
         Balance at 31 December 1999               104.8
         Goodwill amortised                         (2.7)
         Exchange                                   (0.1)
         ------------------------------------------------
         Balance at 30 June 2000                   102.0
         ------------------------------------------------


6. Net Debt

Net debt at 30 June 2000 comprising finance leases, short and long

term borrowings less cash and deposits, amounted to e396.0 million

(1999: e364.0 million).

Information for US Investors (NASDAQ NASDAQ
 in full National Association of Securities Dealers Automated Quotations

U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on
 : WATFZ)

The Group prepares its financial statements using generally

accepted accounting principles (GAAP GAAP

See: Generally Accepted Accounting Principles


GAAP

See generally accepted accounting principles (GAAP).
) applicable in the Republic

of Ireland. The principal differences between US GAAP and Irish

GAAP affecting the Group concern the treatment of foreign currency

hedging transactions, pension cost, the amortization of goodwill,

the provision for deferred taxes and accounting for stock based

compensation expense which are further explained in notes (i) to

(v).

                                            6 months ended (unaudited)
                                            30 June 2000   30 June 1999
                                                 euro m       euro m
         Under US GAAP

         Net sales                                447.0        342.6
         Net loss                                  (0.1)       (26.2)
         Net loss per ADS                          (0c)        (36c)
         Shareholders' equity (including
          unamortized goodwill)                   399.2        369.2


Each ADS represents 10 stock units. A stock unit comprises one

ordinary share of Waterford Wedgwood plc of 6c and one income

share of Waterford Wedgwood UK plc of Stg. 1p.

(i) The Group uses forward currency contracts to hedge foreign

exchange exposures on anticipated income and expenditure.

Under Irish GAAP, these forward contracts are translated into

euros at the contract rate once the transaction giving rise to

the currency exposure is recognised. However, under US GAAP,

unrealized gains Unrealized Gain

A profit that results from holding on to an asset rather than cashing it in and using the funds.

Notes:
Let's say you own a stock that has doubled, but you haven't sold it yet. This is said to be an unrealized gain.
 and losses on all contracts yet to expire expire /ex·pire/ (ek-spi´er)
1. to exhale.

2. to die.


ex·pire
v.
1. To breathe one's last breath; die.

2. To exhale.
 are

measured at each balance sheet date and included in the

statement of income for the period then ended.

The effect of the adjustments for forward contracts at 30 June

2000 was to decrease net income (under US GAAP) by e9.1

million (1999: decrease net income by e38.6 million).

(ii) Under Irish GAAP, the expected cost of providing pensions to

employees is charged to the income statement as incurred over

the period of employment of pensionable employees, following

triennial tri·en·ni·al  
adj.
1. Occurring every third year.

2. Lasting three years.

n.
1. A third anniversary.

2. A ceremony or celebration occurring every three years.
 actuarial ac·tu·ar·y  
n. pl. ac·tu·ar·ies
A statistician who computes insurance risks and premiums.



[Latin
 valuations of scheme assets and

obligations. Any surplus or deficit of plan obligations over

plan assets is amortized, in a systematic manner, to the

income statement over the expected future service lives of the

active employees. Under US GAAP, any surplus or deficit is

determined on an annual basis by reference to the market

values of assets and any excess above a predetermined pre·de·ter·mine  
v. pre·de·ter·mined, pre·de·ter·min·ing, pre·de·ter·mines

v.tr.
1. To determine, decide, or establish in advance:
 level is

amortized to the statement of income over the average

remaining service lives of active employees. The effect of the

adjustment for pension cost at 30 June 2000 was to decrease

net income (under US GAAP) by e2.4 million (1999: decrease net

income by e1.0 million).

(iii) Under Irish GAAP, goodwill arising prior to 1 January 1998

was written-off immediately upon acquisition against

shareholders' equity Shareholders' Equity

A firms' total assets minus its total liabilities. Equivalently, it is share capital plus retained earnings minus treasury shares. Shareholders' equity is the amount by which a company is financed through common and preferred shares.
. After 1 January 1998, goodwill arising

upon acquisition is capitalized Capitalized

Recorded in asset accounts and then depreciated or amortized, as is appropriate for expenditures for items with useful lives longer than one year.
 and written-off through the

income statement over its expected useful life of 20 years.

Under US GAAP, accounting for goodwill as an offset against

shareholders' equity has always been impermissible im·per·mis·si·ble  
adj.
Not permitted; not permissible: impermissible behavior.



im
, thus

goodwill is amortized over the period of its expected useful

life, subject to a maximum write-off Write-Off

A reduction in the value of an asset or earnings by the amount of an expense or loss. Companies are able to write off certain expenses that are required to run the business, or have been incurred in the operation of the business and detract from retained revenues.
 period of 40 years,

through the statement of income. The effect of the adjustment

for amortization of goodwill at 30 June 2000 was to decrease

net income (under US GAAP) by e3.3 million (1999: e3.2

million).

(iv) Under Irish GAAP, no provision is made for deferred taxation

if there is reasonable evidence that such deferred taxation

will not be payable in the foreseeable fore·see  
tr.v. fore·saw , fore·seen , fore·see·ing, fore·sees
To see or know beforehand: foresaw the rapid increase in unemployment.
 future. US GAAP adopts

an asset and liability approach that requires the recognition

of deferred tax assets and liabilities for the expected future

tax consequences of all events that have been recognized in

the Company's financial statements or tax returns. In

estimating future tax consequences, generally all expected

future events are considered other than enactments of changes

in the tax law or rates. The effect of adjustments for

deferred taxes at 30 June 2000 was to increase net income

(under US GAAP) by e1.8 million (1999: increase net income by

e4.6 million).

(v) The Group operates a number of executive option and employee

SAYE stock option schemes. The amounts payable under these

schemes are determined on the basis of the market price of the

shares at the time of grant of the options. However, as

certain of the options do not vest until performance targets

are achieved the number of shares that may be acquired is not

fully determinable Liable to come to an end upon the happening of a certain contingency. Susceptible of being determined, found out, definitely decided upon, or settled.


determinable adj.
 until after the date of grant. Under Irish

GAAP the Group's incentive and employee options do not result

in charges against income.

Under US GAAP, the Group follows the measurement principles of

APB APB

See Accounting Principles Board (APB).
 25 - Accounting for Stock Issued to Employees (`APB 25'),

under which compensation expense is accrued ac·crue  
v. ac·crued, ac·cru·ing, ac·crues

v.intr.
1. To come to one as a gain, addition, or increment: interest accruing in my savings account.

2.
 and booked to

income over the vesting Vesting

The process by which employees accrue non-forfeitable rights over employer contributions that are made to the employee's qualified retirement plan account.

Notes:
 period. The vesting period commences

when it becomes probable that the underlying targets attaching

to the options will be achieved and the number of shares will

be known and ends with the date when the granting of the

shares is not contingent upon Adj. 1. contingent upon - determined by conditions or circumstances that follow; "arms sales contingent on the approval of congress"
contingent on, dependant on, dependant upon, dependent on, dependent upon, depending on, contingent
 the performance of additional

services or other conditions. Compensation expense is booked

on a period by period basis to reflect the difference between

the price payable to acquire the shares under option and the

market price of the shares at the end of each accounting

period until the final vesting date. The effect of the

adjustment for stock based compensation expense at 30 June

2000 was to decrease net income (under US GAAP) by e0.8

million (1999: enil).

                  Reconciliation of US and Irish GAAP

                                     6 months ended (unaudited)
                                 30 June 2000         30 June 1999
                                       euro                euro

Net income per ADS - US GAAP          (0.00)              (0.36)
Unrealized income from
 hedging transactions                  0.13                0.54
Pension costs                          0.03                0.01
Amortization of goodwill               0.04                0.04
Deferred taxes                        (0.02)              (0.06)
Stock based compensation expense       0.01                -
-------------------------------------------------------------------
Net income per ADS - Irish GAAP        0.19                0.17
-------------------------------------------------------------------
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