F&P Healthcare cuts profit forecast due to high NZ dollar

By NZPA

Friday 23rd March 2007

Fisher & Paykel Healthcare today cut its profit forecast by 10% for the March year because of the rise of the New Zealand dollar.

In November, the company indicated it expected its operating profit to be around $98 million, if the exchange rate remained similar to where it was in the first half.

"Allowing for the effect of the appreciation of the NZ dollar over the past six months, the company now expects its operating profit for the full year to be approximately $88 million," it said in a statement.

It said it expected net foreign exchange hedging gains to contribute $6m to operating profit, compared with $41m a year ago.

The company said a one cent increase in the New Zealand dollar against the US dollar affected profit by $3.5m.

The company's was still experiencing revenue growth of around 20%, driven by ongoing strong growth from consumable products, which include sleeping masks and breathing circuits, chief executive Mike Daniell said.

The company announced it had expanded its range of masks used in the treatment of Obstructive Sleep Apnea (OSA).

Daniell said he believed the new mask would contribute to continued strong revenue growth and market share gains in the OSA product group.

F&P Healthcare only recently reiterated its earlier profit guidance, on the proviso that the currency remained around US63 cents. However, it has not and today it rose to a 15-month high of US71.50 cents.

Healthcare shares fell 8 cents today to $3.70 on the news. They have been falling as the kiwi dollar has risen over the last six weeks. They have lost 14% from $4.30 on February 9.

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