KEY POINTS:
The persistently lofty New Zealand dollar has forced Fisher & Paykel Healthcare to cut its operating profit forecasts by $10 million.
The company said yesterday that the New Zealand dollar's latest surge would cut operating profits from $98 million to $88 million for the full year.
The impact of the currency was well flagged in November when the original $98 million projection was made, chief executive Mike Daniell said.
But that did not stop the market reacting negatively, with the shares falling 16c to close at $3.64 yesterday.
In November the company warned that its operating profits for the year were likely to rise or fall by about $3.5 million for every 1c increase in the kiwi against the greenback.
In November the dollar traded between US66c and US67c. It is now back above US71c - closing yesterday at US71.06. Daniell was philosophical about the persistence of the dollar. "Anyone who knows what it is going to do is probably trading it," he said.
But the business was on track for trading revenue growth of 20 per cent, as forecast.
"We're in fantastic shape and if you look out, our margins are highly profitable at current [currency] levels and at higher levels than this," he said. "So our strategy is to keep on expanding our sales teams around the world and announcing new products."
Fisher & Paykel yesterday announced it was expanding its range of masks used in treating obstructive sleep apnoea (OSA).
OSA - a sleeping disorder which restricts breathing - was still seriously under-diagnosed, Daniell said.
"Possibly only 15 per cent of people who have it have been diagnosed so its a rapidly growing market," he said.
"And the many millions who are on treatment need to replace their masks every year or so."
