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F and P Appliances forecasts recovery in FY operating earnings

Thursday 23rd August 2012

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Fisher & Paykel Appliances, the manufacturer of dishwashers, ovens and fridges, forecast a recovery in earnings from its appliances business this year because it doesn't expect a repeat of last year's hedging losses.

Operating earnings before interest and tax for the appliances division would be $35 million to $40 million in the year ending March 31, 2013, from an adjusted $11.3 million last year, according to a statement accompanying the Auckland-based company's annual meeting. The 2012 result included transactional hedging losses of $25.6 million.

F&P Finance, the company's consumer credit arm, would report operating ebit of $35 million to $$38 million from $37.8 million last year. The figures may not be directly comparable because the earnings measures aren't defined under NZX reporting rules.

Group ebit is forecast at $70 million to $78 million, assuming no change to current trading conditions. The company made the forecasts after noting net profit in the first four months of the year climbed to $12.3 million from $4.7 million.

"The board is encouraged by the solid start to the financial year so far, however remain acutely aware of the potential for economic conditions to change suddenly in our key markets, especially in Australia and the US," the company said.

F&P Appliances intends to resume dividend payments this year, it said.

The company's shares rose 0.8 percent to 66 cents and have soared 83 percent this year. The stock is rated 'outperform' based on the consensus of five recommendations compiled by Reuters, with a price target of 66 cents.

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