F&P Appliances lifts profit by $1m to $34.93m

By ELLEN READ

Huge growth in United States sales backed by a strong performance here and across the Tasman have lifted Fisher & Paykel Appliances' interim profit by almost $1 million to $34.93 million.

Revenue for the six months to September 30 was up $30.7 million to $430.6 million, boosted by a 42 per cent increase in unit sales in the US, a 21.2 per cent rise in Australia and 15.9 per cent more unit sales domestically.

A fully imputed interim dividend of 8.8c a share (35.2c a share before the four-for-one share split announced last week) was declared with a record date of November 28 and payable on December 5.

"We're very pleased with the result. It confirmed the overall robustness of where we're going and what the business is trading through," said chief executive John Bongard.

While sales were up, currency effects and product mix affected the margins.

The company has a natural hedge against the US currency - much of its supplies are priced in US dollars, as well as its sales - but the New Zealand dollar's fall against the Aussie currency dented the bottom line by $4.4 million despite hedging being in place.

Traditionally, laundry products are the company's lower priced and therefore lower margin products, so strong growth in dryer and washing Machine sales meant lower margins overall.

As it moves to extend its Auckland and Dunedin factories, capital expenditure is seen at $42 million for the full year.

This sum may be increased for the next financial year if the company's growth predictions are exceeded.

The profit included a $5.3 million interim dividend from 19 per cent-owned Fisher & Paykel Healthcare.

Bongard was unable to comment on the company's purchase of the Farmers finance business, saying it picked up the keys only last Thursday.

F&P Appliances shares closed down 14c at $14.85 yesterday.