Raw Material Costs Hurt Fisher & Paykel Margins
Aug 22, 2006
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Appliance maker Fisher & Paykel says that the high cost of raw materials in the current economic environment have hurt the company's margins, but this has been offset by a boost in overseas earnings.
Chief Executive John Bongard said raw material are "stubbornly high" with recent increases in some categories.
Copper. for example, had virtually doubled since March. Fisher & Paykel has laid off a total of 41 people over the past year as part of its cost-cutting measures.
Chairman Gary Paykel reported that profit after taxation was U.S. $63.9 million compared to $68.6 million for the previous year.
Nevertheless, the company has maintained the dividend at $0.18 per share for the year ended March 31, 2006, and says that appliance sales in the U.S. and Singapore are at "record levels." (The National Business Review).
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