European Stars and Stripes (Newspaper) - September 29, 1994, Darmstadt, Hesse                                I re land company makes painful transition toward profits by Dirk Beveridge a business writer to most people the chunk of Crystal sitting in the table looks like a big ice cube but Fred Curtis envisions a winged horse the hard part he says will be sculpting the fragile front legs without breaking them. Ill wait till the place is empty at night and work Here in the silence Curtis tells a visitor to the Waterford ,be  in another room engraver Tom Hayes balks at putting a Price on a fancy Crystal Globe. I m not being glib but something s Worth what people will pay for it Hayes says we re trying to create an  / a a a. A v. Curtis and Hayes Are two of the Irish master craftsmen who make Waterford Crystal a household name. They Are also two of the fortunate ones economic realities have left hundreds of other Irish craftsmen out of York As the company adjusts to a More competitive global marketplace in part by marketing cheaper Crystal from abroad.  .\a.-. Waterford Wedgwood pc ran into trouble when the recession left it staggering under ibises of around 20 million Irish pounds the equivalent of $30 million a year. Investors led by Irish tycoon Tony o Reilly arid Wall Street powerhouse Morgan Stanley & co. Bought a29 percent stake in 1990 and put the company on a new course. /.?. ,. A. Within three years they had erased the losses and earned 9 million Irish pounds in. 1993 and brought the company s Stock Price Back from 14 Pence two years ago to nearly four times As much these Days. But Success has come painfully. Hundreds of Irish workers lost their jobs As Waterford Cut costs and started buying cheaper Crystal from sources in Germany and Slovenia and gained a bigger share of the vital . Market under an also ran Brand name. Marquis by Waterford.,. A v the company s savings from manufacturing overseas is substantial. Every time Waterford Sells a $30 wine Glass under the Marquis name it makes More Money than i does by Selling a $50 Waterford wine Glass. At Waterford Wedgwood s Reci it annual meeting in Dublin shareholders were relieved to be Baclic in the Black. But amid the expected gripes about big Stock options for directors and the predictable clamouring for a dividend the company has t paid one since t98�f were Calls to bring jobs Back to Ireland. Unemployment officially listed at 15.2 percent but widely believed to be nearer 20 percent is Ireland s top problem and an emotional Issue even to Irish investors who profit when jobs Are exported. I propose we take our Money out of Germany that does to need it and put it Back in Ireland with our unemployment said a shareholder who did not identify herself. Other Waterford Wedgwood shareholders Are concerned that Selling cheaper Crystal could Hurt the company. My concern is that the integrity of the Brand is in grave danger if we reduce the number of Craft workers said Neal Duggan a Dublin accountant. We re in danger of eroding the  o Reilly now chairman of Waterford Wedgwood said Waterford s share of the key . Crysta Market had advanced from 27 percent in 1990, the year before the european imports were added to the line to 34 percent last year. Only a fool could not understand those numbers this company was headed for liquidation said o Reilly who also runs Pittsburgh based  Heinz co. Waterford s chief executive Paddy Calvin agreed in an interview that the Irish shareholders make comments is Dave Didlo one of Waterford s largest sports trophies the Waterford Golf club trophy is displayed at the information Center. With their hearts not with their  had Waterford not Cut its work Force to 1,500 from 3,000 Over the last few years slashed pay and brought in cheaper foreign Crystal the Plant would have closed he said. The changes have been bitter for Waterford s workers. But Ufi Ion leaders at the Crystal Plant put off repeated requests from the associated press to discuss the matter in. Detail. Many Ordinary irishmen cringe when asked about Waterford bringing in cheaper Crystal from Eastern Europe. It s like having a Rolls Royce made in Japan said Dublin native Anthony Campion. There is a risk they dilute the Brand name agreed Allison Stewart a marketing consultant in London. The Way they can prevent that risk is to throw Money at the Marquis Range and Brand it differently Calvin said Waterford makes sure there is no. Confusion insisting for example that retailers display the brands on different shelves. We re paranoid about Quality he said. The company contends High Quality products hand made by such craftsmen As Curtis and Hayes will keep the water of god name in Good repute. The prestigious pieces Are creating a Halo effect which is counteracting any negative that might be perceived As you go Down scale Calvin said. September 29, 1994 stripes Magazine 13