In an updated trading update, Fisher & Paykel Appliances said it expects net profit could fall by as much as 54% as trading conditions have been unprecedented and difficult in all markets. "Slow Christmas sales and factors such as competition have impacted on margins and led to a reduction in revenue," it said.
Net profit after tax is projected at US$25 million to $30 million for the current 2008/09 financial year. That compares with a net profit of $52.2 million for the year to March 2008.
Sales for the nine months to January are down 13.1% in New Zealand, 8.5% in Australia, 12.9% in the United States, and 19% in Europe.
The company says relocating its manufacturing facilities to Thailand, Mexico, and Italy is expected to be completed on time and full production from all offshore facilities is likely to be on stream by the second half of this year. It expects that to deliver significantly lower manufacturing costs than in the past and offer extra capacity capability without significant extra cost.
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