Fisher & Paykel Appliances Ltd reported a return to full year profit on Friday, as it showed the benefits of its restructuring of the past two years with reduced debt and costs.
The kitchen and laundry appliance maker posted a net profit after tax of NZ$33.5 million ($27.2 million) in the year ended March 31, compared with a NZ$83.3 million loss a year earlier, on the back of asset writedowns and tough markets.
F&P Appliances, 20 percent owned by Chinese white goods manufacturer Haier , has struggled because of the global recession hitting sales, high debt levels and the expense of moving manufacturing to lower cost locations.
In December it lowered its forecast for full year earnings before interest and tax (EBIT) for the appliances’ division to NZ$15 million to NZ$25 million, on weaker market demand for its products, but maintained its forecast of NZ$35 million earnings for the finance business.
The appliance business had improved sales and margins but discounting led to lower overall revenue.
No dividend was declared, but the company said it was looking to return to a payout as soon as possible.
It made no forecast for the coming year, saying that conditions were expected to remain challenging.
Shares in F&P Appliances closed on Thursday at NZ$0.55. So far this year the stock is fractionally higher, compared with a 6.6 percent rise for the benchmark NZX-50 index
F&P Appliances, known for its double-door dishwashers and smart washing machines, has moved most of its manufacturing to low cost Mexico and Thailand.