Paykel steps down as chairman of F&P Appliances; Ralph Waters tapped for role

Thursday 26th November 2009

Gary Paykel is stepping down as chairman of Fisher & Paykel Appliances, part of the empire his family helped found, signaling a changing of the guard after the company welcomed a new cornerstone shareholder and strengthened its balance sheet.

Former Fletcher Building chief executive Ralph Waters has been named as his replacement, the company said in a statement. Paykel, who had previously signaled his intention to retire from the board by August 2012 after almost 50 years with the group, said “now is the right time to vacate the chair.”

His departure will also allow the appointment of a new chief executive ‘with the maximum degree of independence” after long-serving CEO John Bongard announced in September he would bring forward his retirement as he battles prostate cancer.

Waters said he doesn’t plan to remain chairman in the longer term, though will stay in the role during a number of key decisions, including the CEO appointment and “board refreshment” are completed and the company is on a more stable footing.

“The major challenge for the company within its control is to lift production rates in the Thailand and Mexico factories,” Waters said. “The major issues outside of the company’s control are a recovery in the U.S. market, which at this stage is still not in evidence, and the early signs of rises in material prices.”

China’s Haier Group became a 20% shareholder in the company this year giving it access to the Chinese market and opportunities to share technology and production. F&P Appliances strengthened its balance sheet by selling shares at a deep discount early this year and renegotiating the terms of its bank debt.

Shares of F&P Appliances rose 1.6% to 64 cents and have sunk more than 50% this year.

Businesswire.co.nz

Comments from our readers

No comments yet