F&P Appliances lowers earnings forecast

Friday 17th December 2010

Fisher & Paykel Appliances Holdings has lowered its full year earnings forecast after November trading results came in below expectations.

The company today said that if the earnings trend in November continued, full year earnings before interest and tax for the Appliances business would be between $15 million and $25 million.

Last month, when it published its first half result, the group had said it was expecting full year earnings before interest and tax for the Appliances business to be between $28m and $35m.

In its announcement today, the group said it reaffirmed its forecast for full year earnings before interest and tax for the Finance business was unchanged around $35 million.

The group said the below expectations trading result for the Appliances' business last month had included some unfavourable one-off items.

In addition to weaker demand for Appliances' products, prevailing market conditions had also adversely affected Appliances' third party component and technology sales, the group said.

"Whilst there is no certainty the earnings trend in November will continue, should this occur, Appliances' full year earnings before interest and taxation will be between $15m and $25m."

NZPA

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