F&P heads for $80.06m profit

The company expects strong growth in its Europe operations. Picture / Paul Estcourt

Fisher & Paykel Appliances expects to meet its full-year earnings target as it consolidates acquisitions and expansion in Europe and the United States.

Chief executive John Bongard said yesterday that he expected growth in its main market, the US, to slow, but an improvement in Europe where it had just acquired Italian cookware company Elba.

"The US would be starting to get to that period where growth would be slowing but Europe, on the other hand, should be in up-mode so the percentage rate of growth should be higher in Europe over the next few years," he said.

Bongard was "comfortable" with the company's May forecast of a net profit of $75 million to $80 million for the year to March 31. Analysts expect a net annual profit of $80.6 million, according to estimates.

The US accounts for 34 per cent of F&P Appliances' total revenue. Europe, after the Elba acquisition, will contribute about 10 per cent.

In a step to build up its business in Europe, FPA bought Elba, which manufactures free-standing stoves and built-in ovens and cooktops, from De Longhi last month.

Bongard said his Auckland-based company was not considering more acquisitions in Europe nor the US.

"It's a matter of fully integrating the business we just got."

FPA bought US-based Dynamic Cooking System in 2004 and said last year that it would move part of its production to the US.

Asked if there were plans to further shift its production lines, Bongard said: "Every part of our business is constantly under review."

- NZPA