Stocks to watch: FPA raises capital, Rakon earnings slump

Wednesday 27th May 2009

The following stocks may be active on the New Zealand exchange after developments since the close of trading yesterday.

Themes of the day: Fisher & Paykel Appliances said it will raise at least $189 million, including China’s Haier Group buying a 20% stake. Stocks on Wall Street, crude oil and copper rallied after U.S. consumer confidence jumped by the most in six years, stoking optimism the world’s biggest economy will lift out of its slump.

Fisher & Paykel Appliances (NZX: FPA ): The manufacturer plans to raise at least $189 million via a rights issue and the sale of shares amounting to 20% of the company to Chinese appliance manufacturer Haier Group. At the same time it announced agreement with its banks for a new $575 million facility. Separately today the company posted a full-year net loss of $95.3 million as revenue dipped 2.4% to $1.37 billion. The shares come off trading halt today, having last traded at 66 cents and climbing 50% in the past month.

Fisher & Paykel Healthcare (NZX: FPH ): The shares dropped 6.5% to $2.87 yesterday after the manufacturer of breathing masks and respirators forecast 2010 earnings of $75 million to $80 million. That’s less than the $102.9 million estimate in a Reuters survey. Profit in 2009 jumped 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. Freightways Ltd.

Freightways (NZX: FRE ): The courier and logistics company today announced the sale and lease-back of a property in Wellington used by its Online Security Services Ltd. unit. Freightways reaped a profit of $3.6 million from the sale, which will be used to repay debt. The stock rose 9 cents to $3 yesterday.

Guinness Peat Group (NZX: GPG ): Chairman Ron Brierley may delay his retirement, planned for 2010, as the global financial slump puts back the company’s plans to make a ‘value return’ to shareholders, the Stuff website reported. The shares fell 2.5% to 77 yesterday and have dropped 21% this year.

Horizon Energy Distribution (NZX: HED ): The electricity distributor posted full-year profit of $5.1 million, down from $5.5 million a year earlier. The company said it is “confident of growing over time both the regulated and unregulated business of the company.” The shares last traded unchanged at $3.15.

Methven (NZX: MVN ): The tap maker posted a 3.1% gain in full-year profit to $10.1 million, in line with its guidance, as operating revenue climbed 20% to $137.3 million. The company reduced its debt by 18% to $26.8 million. The shares fell 1 cent to $1.29 yesterday.

Rakon (NZX: RAK ): The maker of components for navigation systems reported a 59% slump in full-year net profit to $4.5 million, reflecting falling revenue and accounting changes. The Auckland-based company said it is considering more investment to China. The shares rose 3 cents to $1.50 yesterday.

Businesswire.co.nz

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