The firm hopes new designs will win over younger consumers

The Irish company said sales in the year to 31 March were likely to be about 6% down on the previous 12 months and profit margins would also be lower.

Waterford Wedgwood said a sales pick up in November and December had not proved to be "a sustained upturn".

The firm is aiming to boost sales amid slowing demand in its key US market and competition from cheaper imports.

Its fortunes over the last year have also been hit by weakness in the dollar.

Last year it bought UK bone china maker Royal Doulton, a move which it said would boost the competitiveness of both companies and lead to cost savings.

Falling short

During October, sales were down 10% on the same period the year before, although Waterford said sales "stabilised" in November and December.

"However this was not the start of a sustained upturn," the company said.

"Sales in January and February have disappointed, particularly February, and were 11% down on the same months last year."

Certainly the market is changing and we have to change with it Redmond O'Donoghue, Waterford Wedgwood chief

Waterford Wedgwood shares closed down 6% on Friday after finance director Paul d'Alton chief resigned to take up a post with another company.

They dropped a further 20% on Monday following the profit warning before recovering most of the lost ground to close at 4.2 euro cents (2.9p; 5.6 US cents) on the Irish Stock Exchange.

Chief executive Redmond O'Donoghue said the company would be introducing more contemporary designs and hoped new collections from designers such as Vera Wang and Jasper Conran would attract younger customers.

"Certainly the market is changing and we have to change with it," he told the Associated Press news agency.