Fisher & Paykel Appliances reports NZ$83m loss
Fisher & Paykel Appliances Holdings Limited (FPA) posted a net loss of NZ$83.3 million for the year ended 31 March 201, a 12.5% improvement on the previous year. The company said the result reflects a second half recovery for the Appliances’ business, notwithstanding a continuation of difficult trading conditions in the US.
“The improvement on the first half result was driven by financial benefits arising from the Global Manufacturing Strategy and market share gains in Australia,” Fisher & Paykel Appliances said.
The company said total impairments and fair valuation adjustments for the full financial year amounted to NZ$102.3 million before tax.
FPA reported normalised group profit after tax of NZ$18 million, which was down on the prior year result of NZ$33.8 million, but within previously announced market guidance of $16 million to $23 million.
The company said total group revenue was NZ$1.16 billion, while group EBIT was NZ$58.3 million.
Managing director and CEO, Stuart Broadhurst, said it had been a difficult year for the company.
“The challenges and distractions associated with shifting manufacturing locations are now firmly behind the company,” Mr Broadhurst said.
”Going forward the company is committed to building upon recent gains, executing growth opportunities and developing products for the future.”
FPA expects demand condition to remain fragile and competitor activity to remain intense during FY11.
”The Company is well positioned to benefit from revenue growth opportunities including expanding US distribution into Sears and Lowe’s, distributing Haier products in New Zealand and Australia and the launch of Fisher & Paykel brand in China,” the company said.
”The benefits of a lower manufacturing cost base are likely to be partially offset by competitor activity, rising commodity prices, increasing sea freight charges and lease costs.”
FPA said labour costs would also increase in FY11 following the removal of the 5% salary reduction for salaried employees effective 1 April 2010.
The company said the Finance business is expected to remain resilient despite soft retail conditions in New Zealand, although any increase in interest rates would place pressure on FY11 earnings.
FPA decided against issuing profit guidance for FY11, however added that an update on trading and market conditions would be provided at the Annual Shareholders Meeting in August 2010.
As at 1050 AEST, Fisher & Paykel Appliances' shares were unchanged at 45c.
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