KEY POINTS:
Home appliance manufacturer Fisher & Paykel Appliances Ltd has posted a 16.6 per cent rise in first-half net profit resulting from higher sales and lower costs.
The kitchen and laundry appliance maker today said profit for the six months ended September 30 was $29.3 million, up from $25.6 million a year earlier.
An unchanged interim dividend of 9 cents a share was announced.
Shares in F&P Appliances, a top-10 stock, were unchanged in the few minutes after the sharemarket opened today at $3.37.
Before one-off items, group profit after taxation for the six months was up 18.7 per cent on the previous corresponding period to $32.31m.
The one-off items represented relocation costs and the profit on the sale of buildings, Appliances said.
Taxation for the half was reduced by $2.59m following an adjustment to the group's deferred tax liability to reflect the reduction in the New Zealand company tax rate to 30 per cent from next April.
Revenues from ordinary activities slipped 0.5 per cent to $693.07m, with the company reporting revenue up in all Appliances' markets in local currency terms.
Before one-off items, earnings before taxation and interest were up 6.1 per cent at $56.25m, due to increased sales, new product releases and continued cost reduction activities.
As a result, Appliances' operating margin improved to 6.8 per cent compared to 6.3 per cent for the first half last year, the company said.
In local currency terms, sales in Appliances' three major markets of New Zealand, Australia and North America achieved record highs.
These records were realised despite weakening markets in both New Zealand and the United States, Appliances said.
One-off costs associated with relocating the New Zealand laundry products and electronics factories to Thailand amounted to $11.38m before taxation.
That was partially offset by a $5.02m profit before tax on the sale of the New Zealand northern region warehouse.
The Finance business had a satisfactory and credible performance during a period of considerable uncertainty and pressure within the finance industry, Appliances said.
Funding and liquidity remained solid with reinvestment rates on debentures continuing at satisfactory levels.
Bank facilities had been increased and funding through the A1+ rated Standard & Poors commercial paper programme had been restored after a period of uncertainty in that debt market.
- NZPA
