KEY POINTS:
The strong New Zealand dollar is likely to have a stifling effect on Fisher & Paykel Healthcare's full-year result, out on Wednesday.
The medical equipment maker slashed its profit forecast last month, laying the blame on the strong kiwi.
Operating profit for the year ending March 31 is likely to be around $57 million, down from the $68 million forecast during its half-year result announcement in November, which had been based on the kiwi-US dollar exchange rate averaging 0.75 for the rest of the financial year.
The April downgrade was the second time in the past year that the company had to cut its forecast. In August, it expected full year operating profit of around $75 million. It posted an $89.6 million profit before interest and tax last year, when the average kiwi-US dollar exchange rate was 0.63.
Operating revenue was expected to grow around 18 per cent in US dollar terms to around US$270 million.
The company's products, used in respiratory care, acute care and the treatment of obstructive sleep apnoea, are sold in more than 110 countries with US sales contributing 60 per cent of its revenue.
Goldman Sachs JBWere analyst Marcus Curley said the guidance had indicated that the strength of the New Zealand currency had affected the company's profitability, so he wasn't expecting any surprises.
"I think most people will be looking at how the underlying business is performing rather than the impact of the New Zealand dollar." In the long term, export reliant businesses such as Fisher & Paykel Healthcare were likely to get relief, he said.
Shares in Fisher & Paykel Healthcare closed at $2.75 on Friday.
