Sharechat Logo

F&P Healthcare raises earnings forecast on weaker kiwi

Thursday 23rd August 2018

Text too small?

Fisher & Paykel Healthcare Corp has raised its full-year earnings forecast by about $5 million on the back of strong sales growth and the weaker New Zealand dollar.

The firm sells hospital equipment and personal sleep apnoea products in about 120 countries and gets only about 1 per cent of its sales in New Zealand.

Chief executive Lewis Gradon said the recent weakening of the kiwi dollar was a major driver of the earnings upgrade. The kiwi recently traded at 66.75 US cents, and hs dropped about 6 percent so far this year. 

At current exchange rates, operating revenue for the six months ending Sept. 30 of $510 million should deliver a net profit of about $95 million. Assuming an exchange rate of 67 US cents for the rest of the year, those measures would rise to $1.07 billion and $215 million respectively for the year ended March 2019, the company told shareholders today.

The firm’s shares rose 6 cents to $15.30 on the NZX, taking their gain this year to almost 9 per cent.

F&P Healthcare increased net profit by 12 percent to $190 million in the March year. Operating revenue climbed 10 percent to $980 million.

In May the firm had forecast current year earnings of $210 million, assuming an exchange rate of 69.50 US cents and operating revenue of $1.05 billion.

(BusinessDesk)

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

NZ dollar weakens on global tensions, weak local manufacturing
General Capital (GEN:NZ) releases strong preliminary result
Burger Fuel turns to profit as it changes direction
Contact secures winter gas from OMV
Arrow International liquidators find $40M of notional assets
Forestry encroachment an issue for councils - Sage
NZSA concerned Kiwi Property paying too much in dividends
NZ food prices rise an annual 1.7% in May, rental inflation steady
Provincial centres lead the way in UFB uptake
Manufacturing grows at slowest pace in more than six years

IRG See IRG research reports