Fisher & Paykel posts full year loss, but improvements now forecasted

By Paul Hayes

AUCKLAND, NZ: Despite what it calls the recent recovery of the appliance industry, Fisher & Paykel has reported a full year loss of NZ$83.3 million ($67.39 million) for the year to 31 March, an improvement on its NZ$95.3 million loss the previous year.

The loss came after significant asset write downs in both Europe and the US and a fall in total revenue to NZ$1.16 billion.

In its statement to the ASX this morning, Fisher & Paykel said that after a second half recovery in its appliance business the company’s normalised group profit after tax was NZ$18million, down on the prior year result of $33.8 million, but still within its previously announced guidance of NZ$16 million to NZ$23 million.

The company attributed a second half boost to market share gains after commencing the distribution of Haier products in New Zealand and Australia, the completion of its Global Manufacturing Strategy with the successful relocation of manufacturing operations from Australia to Thailand and price rebalancing from a stronger Australian dollar.

This month also saw the Haier Group, which has bought a 20 per cent share in the company, officially launch the Fisher & Paykel brand in China.

Chief executive, Stuart Broadhurst, admitted it had been a difficult year for the company.

“The challenges and distractions associated with shifting manufacturing locations are now firmly behind the company.

“Going forward the company is committed to building upon recent gains, executing growth opportunities and developing products for the future.”

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