Raw Material Costs Hurt Fisher & Paykel Margins
Aug 22, 2006
 Print this page

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).

Back to Breaking News