Shares in medical device maker Fisher & Paykel Healthcare have hit a new all-time high after the company lifted its full-year profit guidance and announced a major expansion plan for its Mexican manufacturing facility.
The Auckland-based company's stock, which has gained almost 80 per cent in the last 12 months on the back of positive financial results, was up 3.46 per cent at $4.19 in early trading.
The company, which makes breathing masks and respiratory humidification systems, raised its full-year profit guidance for a second time on increased demand for its devices to treat the condition obstructive sleep apnea and as its margins improved.
Profit is likely to be $97 million in the year ending March 31, from a previous estimate of $90 million to $95 million, and 26 per cent ahead of its 2013 profit of $77.1 million, the Auckland-based company said in a statement.
Fisher & Paykel Healthcare, which competes with Resmed and Respironics, is improving profitability from new products and as it gains from operating efficiencies. The company plans to spend $4 million to expand its manufacturing area by two thirds at its plant in Tijuana, Mexico, it said today.