F&P Appliances soothes fears

Fisher & Paykel Appliances moved to soothe market fears yesterday after its sister company, Fisher & Paykel Healthcare, lost over a quarter of its value last week when it put out a result that failed to meet expectations.

F&P Appliances said operating performance in the period from November 11 to January 31 had been ahead of expectations "driven by a combination of higher than budgeted sales, improved margins and lower costs from post-restructuring".

Managing director John Bongard said sales had improved on both sides of the Tasman.

"This is in line with higher consumer spending due to lower interest rates, and a change in focus from travel to 'lifestyle purchases', particularly in light of Government assistance for new housing starts in Australia," he said.

"We are particularly pleased with the continuing growth of our sales in the United States. There was a slowdown following the September 11 tragedy, but our US sales from October to the end of January were up 63 per cent on the previous corresponding period."

Establishment of Fisher & Paykel's UK sales and marketing subsidiary was progressing satisfactorily, and exports to European Union and Mediterranean countries, together with Asian regions, were performing to expectations, the company said.

Healthcare shares arrested their decline yesterday, rising 15c to $10.65c. Appliances ended the day up 29c at $9.20.

- NZPA