F&P Healthcare posts 76% profit jump on weaker kiwi, respirator sales

Tuesday 26th May 2009

Fisher & Paykel Healthcare posted a 76% jump in full-year profit as the weaker New Zealand dollar swelled the value of rising sales of respirators and breathing masks in the U.S.

Net income rose to $62.2 million, or 11.8 cents a share, from $35.3 million, or 6.7 cents a year earlier, the Auckland-based company said in a statement. Sales jumped 28% to $458.7 million, or 10.2% in U.S. dollar terms. Profit about matched the $61.8 million estimate in a Reuters survey.

F&P Appliances gets about 80% of its revenue in U.S. dollars. In the 2008 business year, the currency peaked at more than 81 U.S. cents and only briefly traded below 70 cents while the currency spent the second half of the latest year at 62 cents or below. Earnings are forecast to rise to $75 million to $80 million this year on operating revenue of $540 million, assuming the kiwi averages about 60 U.S. cents, the company said today.

“Demand for our respiratory humidifier systems was exceptionally strong,” said chief executive Mike Daniell. The company plans to establish an offshore manufacturing plant this year and roll out sales and distribution centres in four countries including Japan, he said.

The company will pay a final dividend of 7 cents a share, unchanged from a year earlier. The shares dropped 5.5% to $2.90 and is down about 1.6% this year. It will offer a dividend reinvestment plan.

Daniell said respirator sales were helped by hospital Group Purchasing Organisation orders in the U.S. and deliveries of back orders in the first half of the year.

Businesswire.co.nz

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