F&P predicts annual loss, blaming weak US sales

Fisher & Paykel Appliances said it expects a full-year loss because of weak US sales.

The net loss will be as much as $5 million (in the year ending March 31) compared with a previously forecast $11.7 million profit, the company said. Excluding unusual items, earnings will be $20 million to $23 million, down from a previously forecast $32.8 million, it said.

Fisher & Paykel raised $149.2 million from shareholders in June and sold a 20 per cent stake to China's Haier Corp to reduce debt. Higher than expected levels of competition and continued depressed market conditions meant full-year US sales would be 12 per cent lower than forecast in May, it said.

The company has been in talks with bankers because trading in the six months to September 30 is expected to breach debt covenants.

- BLOOMBERG