German porcelain manufacturer Rosenthal AG of Selb has posted much higher gross losses at group level in the first half of the year than in the same period last year.
In the company“s interim repor…
German porcelain manufacturer Rosenthal AG of Selb has posted much higher gross losses at group level in the first half of the year than in the same period last year. In the company“s interim report, Rosenthal said pre-tax losses were DM 8.9 million, up DM 6.9 million on the same period last year. This was attributed to a sharp decline in demand on the porcelain market. Ceramics industry association VKI reported a 8.9% decline in turnover from household ceramic ware. Rosenthal group turnover from January to June rose by DM 0.8 million to DM 145.9 million due to new distribution agreements with majority shareholder Waterford Wedgewood plc in Italy. In 1999, the company invested DM 30 million in the modernization of production which is concentrated in two plants in Germany. The improved profitability in manufacture and the effects of the investment in foreign markets will be felt in 2000. For 1999, the management board is expecting to post a profit. Last year a net profit at group level of DM 3.1 million (-18.3 million) was posted for the first time in three years.