F&P Healthcare March year net profit falls 25pc

1.00pm

Medical equipment maker Fisher & Paykel Healthcare today reported its March year net profit fell 25 per cent to $54.7 million.

Despite the fall, it lifted its final dividend payout to 28 cents per share (cps) from 27 cps.

The average forecast by analysts had been for a net profit of $52 million.

The rise in the New Zealand dollar seems to have hit the company, whose major export market is the United States.

F&P Healthcare's products include respiratory humidifiers, infant resuscitators and breathing devices for the treatment of obstructive sleep apnea -- a condition where the sufferer stops breathing during sleep.

The company's operating revenue of $214.8 million was up from $208.4 million the previous year.

Basic earnings per share were 53 cents.

The company said two thirds of its revenue was derived in US dollars.

Research and development expenses increased by 22 per cent to $14.1 million or 6.6 per cent of revenue for the year ended 31 March 2004 compared to 5.5 per cent of revenue the previous year.

The company said this increase was largely due to increased product development activity and the number of new products released during the year.

To protect itself from foreign exchange volatility the company has a mix of foreign exchange contracts and call options, up to 2-1/2 years forward, with a face value of around $329 million.

These instruments are at average exchange rates of US44 cents and 43.5 euro cents to the New Zealand dollar.

F&P Healthcare shares last traded yesterday at $12.56, having fetched between $10.50 and $13.30 over the past 12 months.

- NZPA