Shares in Waterford Wedgwood dropped more than 24 per cent in morning trading after the company revealed that it had missed its sales targets for the first two months of the year.
Trading in the shares was brisk with more than 2.9 million shares on the move. However, the trading statement released this morning by the crystal glass and luxury goods maker sparked a 7 cent drop in the value of its shares to 22 cent.
It said margins were under pressure because of continuing weak demand from the major US store groups, but added that the underlying business remains strong.
In a trading statement, the company said: "The US economic situation and uncertainty over future events in Iraq, coupled with the ongoing difficult global economic circumstances, particularly in Germany, are having a negative impact on overall demand levels".
Against this background, it said, earnings per share before exceptionals and goodwill are likely to be in a range between 4.5 cent and 5 cent in the current financial year, compared with 4.25 cent, and that pre-tax profits after exceptionals should exceed €40 million.
Mr Redmond O'Donoghue, group chief executive, said: "These are times of great uncertainty particularly for luxury branded products. However, Waterford Wedgwood's performance in fiscal 2003 will show growth on the prior year."
