By Phil Boeyen, ShareChat Business News Editor
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Friday 2nd November 2001 |
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For the six months ended September the manufacturing group's profit jumped by 62% to $37.5 million compared with $23.1 million in the same period last year.
Revenue rose 10% to $473 million and generated net cash flow from operations was $40.5 million compared to $39 previously.
A low dollar helped to boost healthcare revenue to $101.5 million for the period and the division recorded a trading profit of $40.5 million, representing an operating margin of 40%.
"We estimate that approximately 8.3% of our revenue growth was attributable to the decline in the value of the New Zealand dollar relative to the US dollar," the company says.
FAP says that due to continuing growth it will now expand its healthcare manufacturing facility earlier than planned, adding an extra bay with completion due early in 2003.
Profit at the appliances division also grew, rising 26% over last year to $17.1 million.
The company says the growth reflects its pursuit of international sales and a drive for operating efficiency.
Appliances revenue rose 7.3% to $349.7 million although in Australia sales were down as the company's washing machines came under price competition, particularly from Korean products.
The company says in other international markets appliance revenue was 75% higher, with most growth coming from the US its DishDrawer and Eco Smart autowashers gained further acceptance.
Revenue in New Zealand was comparatively flat.
"Our successful application for dumping duties on Korean products has eased some price pressure, but the market remains very competitive."
FAP says it is expecting ongoing growth from all of its major healthcare products while appliances should have a satisfactory second half supported by international growth and cost reductions.
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