Shares in Whiteware manufacturer Fisher & Paykel Appliances were trading at an all time high of $4.30 by noon today after the company lifted its profit forecast for the year to March.
The company said it now expected a net profit after tax of between $80 million and $85 million from the $73.5 million previously flagged.
Fisher & Paykel Appliances executive chairman Gary Paykel said the company’s appliance business had “continued to perform solidly on the back of increased sales volumes”.
“The recently purchased Farmers Finance business is also performing above initial expectations,” he said in a statement to the NZX.
Fisher & Paykel Appliances acquired Farmers Finance last year and said today the division was on target to contribute earnings before acquisition interest costs and tax of $9 million to $10 million for the five months following the purchase.
Following integration, Farmers Finance is expected to contribute cost savings from synergies in operations of more than $3 million per annum. These savings would be partially reflected in the 2004-05 financial year.
Meanwhile, sales of appliances were expected to exceed 1.15 million units in the current financial year, an increase of approximately 15 per cent on last year.
Fisher & Paykel Appliances managing director John Bongard said New Zealand and Australian sales had exceeded expectations and progress in the US had continued strongly.
The company said it had struck another deal with US dishwasher giant Whirlpool to manufacture double drawer “integrated” dishwashers for sale in the US under the Whirlpool brand.
“These units, which carry differentiated features and styling, will be branded, marketed and distributed by Whirlpool Corporation in North America,” the company said.
“The agreement that we have established with Whirlpool is a further development of the strategic alliance announced last year and will help the penetration of DishDrawer throughout the USA,” Mr Bongard said.
Fisher & Paykel will continue to sell its full range of double and single Fisher & Paykel-branded DishDrawers through its own retail outlets in the US.
“The market is large enough for both companies to benefit from this arrangement,” Mr Bongard said.
Last month F&P Appliances said it had negotiated exclusive rights to distribute and sell Whirlpool’s products in New Zealand.
F&P Appliances formed a global strategic alliance with Whirlpool, the largest US home appliance manufacturer, in August 2003.
F&P Appliances will announce its result for the year ended March 31 2004 on May 20.
Fisher & Paykel Appliances shares have traded between $2.31 and $4.30 over the last 12 months.
From The New Zealand Herald