New Zealand-based Fisher & Paykel Appliances Holdings Limited announced that it has upgraded its profit forecast for the year ending March 31, 2004 to between NZ$80 million (approx. U.S. $52.0 million) and NZ$85 million (approx. U.S. $55.2 million) after taxation. Previous guidance on the result had been for
NZ$73.5 million, the amount the company recorded the year prior.
"The Appliances business has continued to perform solidly on the back of increased sales volumes," Gary Paykel, executive chairman, said in a statement. "The recently purchased Farmers Finance business is also performing above initial expectations."
The company said that the Farmers Finance activity of Fisher & Paykel Finance is on target to contribute earnings before acquisition interest costs and tax of NZ$9 million to NZ$10 million in the 5 months following the purchase. Alastair Macfarlane, managing director of Fisher & Paykel Finance, said the Farmers Finance sector is performing well and that profitability will be further enhanced after the business is fully integrated with the company's existing Finance operations.
Following the integration, the business projects cost savings in excess of NZ$3 million per annum due synergies in operations. These savings will be partially reflected in the 2004-2005 financial year, the company said.
Sales of appliances are expected to exceed 1.15 million units in the current financial year, an increase of approximately 15 percent compared to last year.
"Sales in New Zealand and Australia have exceeded expectations, and progress in the USA has continued strongly, providing good opportunities for growth," stated John Bongard, managing director of Fisher & Paykel Appliances Limited. "Our entire manufacturing system has responded well to increased production requirements. Capital expenditure is expected to be in line with forecast at NZ$40 million to NZ$45million for the current financial year."
The company is scheduled to announce its results for the year ended March, 31 2004 on May 20.
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