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Fisher & Paykel Healthcare has indicated that 2009 operating profits could be higher than previously forecast because of the falling New Zealand dollar.
In a response to a query from the Australian Stock Exchange about a surge in its share price, the medical equipment maker said its previous operating profit forecast of around $86 million could be too low.
It had provided that guidance at its annual meeting on August 22 based on the kiwi-US dollar exchange rate remaining at 72c for the rest of the financial year.
"Given the NZD:USD has fallen further in value, that would imply operating profit for the year ending 31 March 2009, and possibly more importantly years further forward, would have the potential to be higher again," the company said.
It had reiterated a statement at the annual meeting that every one percentage point movement against the weighted average of the other currencies they trade in would have a $2.1 million impact on annual operating profits.
The New Zealand dollar ended yesterday at US60.20c as investors betting on interest rates outside the US falling sharply helped the greenback extend gains against a basket of currencies.
Fisher & Paykel products are sold in more than 110 countries, with US sales contributing 60 per cent of its revenue.
It announced yesterday that it has expanded its range of medical devices for the treatment of obstructive sleep apnoea. The new range of SleepStyle 240 CPAP flow generators and two new masks will be unveiled in the US next week.
Europe, the company's next largest market, accounts for about 32 per cent of revenue.
Shares in the company closed at $3.17 yesterday, down 10c.
