F&P tips ongoing profit growth

By ELLEN READ manufacturing writer

Fisher & Paykel directors foresee a continued improvement in net operating profit in the period leading up to the separation of the company's appliance and healthcare divisions.

In its 2001 annual report, the company's directors say they expect ongoing growth in each of Healthcare's major product groups and that the appliance division is strongly positioned to capitalise on its innovative product platforms.

The company posted a $60.3 million March-year operating profit, exceeding forecasts of $55 million.

The result was affected by $73 million in unusual items - including around $64 million in unrealised foreign exchange losses - which dropped the bottom line to $11.04 million.

Fisher & Paykel plans to complete the separation of its healthcare and appliance divisions, and the subsequent 20 per cent US Healthcare share offer, by year's end.

Shareholders will vote on the separation in late September or early October. A 75 per cent approval rate is required.

Chief executive Gary Paykel said in the annual report that he was restricted from saying too much about the future because of the United States securities regulations.

"Although no assurances can be given, the board is confident that the separation should increase value for shareholders by allowing financial markets to separately value Fisher & Paykel Healthcare and Fisher & Paykel Appliances," he said.