Fisher & Paykel Appliances expects recovery

Dividends are intended to resume this year. Photo / Glenn Jeffrey
Dividends are intended to resume this year. Photo / Glenn Jeffrey

Fisher & Paykel Appliances forecast a recovery in earnings from its appliances business this year because it doesn't expect a repeat of last year's hedging losses.

Operating earnings before interest and tax for the appliances division would be $35 million to $40 million in the year ending March 31 next year, from an adjusted $11.3 million last year, according to a statement accompanying the Auckland-based company's AGM.

The 2012 result included transactional hedging losses of $25.6 million.

F&P Finance would report operating ebit of $35 million to $38 million, from $37.8 million last year.

The figures may not be directly comparable because the earnings measures aren't defined under NZX reporting rules.

Group ebit is forecast at $70 million to $78 million, assuming no change to current trading conditions. The company made the forecasts after noting net profit in the first four months of the year climbed to $12.3 million from $4.7 million.

F&P Appliances intends to resume dividend payments this year. Shares closed up 2.5c at 68c yesterday.

- BusinessDesk

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