Waterford Wedgwood now has some very modern product ranges

For the six months to 30 September sales were 356m euros ($459m; �249m) which on a like-for-like basis were down 5% on the same period in 2003.

Waterford reported a pre-tax profit of 8.9m euros, but only thanks to the sale of cookware business All-Clad.

The firm added talks on buying UK rival Royal Doulton were making progress.

Challenges

Waterford had warned in October that sales were lower and that, as a result, it's half-year figures would come in below expectations.

"As previously advised, although market share was maintained, sales in the six months were disappointing," said Waterford Wedgwood chief executive Redmond O'Donoghue.

The company added that "current trading remains very challenging".

"October sales were 10% down on the same period last year on a like-for-like basis... although indications on trading in November suggest some improvement"

Mr O'Donoghue said the company was continuing to look at whether to make an offer for Royal Doulton.

"A successful acquisition of Royal Doulton would increase the volume through our factories without substantially increasing production costs," he said.