Irish ceramic bathroom sinks and toilets maker Qualceram Shires said first-quarter sales are down an estimated 30 per cent due to a significant fall in house building.
As a result, the company expects turnover for the six-month period to June 30th to be down 30 per cent compared with the same period the previous year. The first quarter decline takes into account a 13 per cent decline in the sterling euro exchange rate.
In its first interim management statement – required under the transparency regulations – the Dublin and London listed company said a combination of a weaker economic climate, an uncertain European interest rate market and the credit crunch was hurting sales.
The Arklow-based company said market conditions in Ireland and the UK "remain challenging".
Qualceram said it was continuing to evaluate an unsolicited approach it received in March from an unnamed suitor.
Qualceram shares have fallen by over 50 per cent in the last 12 months to €1, giving the company a market value at the close of trading on Friday of €22.2 million.
Approximately 40 per cent of the company's shares are owned by management.
The company said that to counteract the downturn in the market the group was looking to develop new business areas and during the remainder of this year planned to expand into the DIY sector.
It also said it has made good progress to reduce its costs. Last year Qualceram approved the €31 million sale of its Arklow headquarters, a move that will eradicate the company's debt.
The company's profit fell 30 per cent in the first quarter after dropping by 49 per cent last year.
