Fisher & Paykel Appliances today blamed the high dollar for a 14 per cent fall in its March net profit to $54.2 million.
Normalised profit, taking out the one-off cost of restructuring, was $65.5m, up 4.3 per cent, which the company said was in sharp contrast to performance
in the global appliances industry.
Some $14m of one-off costs came from relocating much of the company's New Zealand manufacturing overseas. Another $2m charge related to the failed sale of its finance company. Offsetting those charges was a $4m land sale.
Appliances shares fell 3c to a record low of $2.10 when the market opened today.
Revenue was only down 0.9 per cent to $1.4 billion and operating revenue down $17m to $1.3 billion.
The effects of the high dollar reduced sales revenue by $74.9m.
The company will pay an unchanged, fully imputed 9 cents per share dividend on July 15.
The company recorded a $2.6m cut in its tax bill as a result of the reduction in its deferred tax liability following the reduction in the corporate tax rate to 30 per cent.
The company said it had record sales revenues in Australia and Europe while sales in North America, rose 5.5 per cent despite depressed market conditions.
The company relocated its laundry manufacturing plant from Auckland, to Rayong, Thailand with production beginning in March on time and on budget.
The finance business contributed a normalised operating profit of $26.9m before acquisition interest and taxation, which chief executive John Bongard called "a robust performance given the market conditions".
- NZPA
