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Fisher & Paykel Appliances says it will continue to review where it bases its operations as the high New Zealand dollar, interest rates and raw material costs cut into its bottom line.
Fisher & Paykel chief executive John Bongard said that even with the recent weakness in the
dollar, stability remained a concern.
"Free-trade agreements already in place or under negotiation with low labour countries worldwide discourage further substantial investment in this country," said Bongard.
He told shareholders at yesterday's annual meeting that trading conditions remained challenging.
The whole Fisher & Paykel Appliances business was under scrutiny, but New Zealand would remain its home base.
"We have been a New Zealand manufacturer for 71 years, so the decision to relocate some of our manufacturing capability was not an easy one," said Bongard.
The appliance company last week said it would shift its Auckland electronics factory operation to Thailand at the cost of about 96 jobs.
Fisher & Paykel also this year revealed plans to move manufacture of its laundry appliances from Auckland to Thailand.
At the company's annual meeting yesterday, Bongard said: "We continue to be faced with many challenges, particularly the high value of the New Zealand and Australiandollar.
"This has greatly assisted our competitors in importing appliances at cheaper prices."
Bongard did not give any forecasts, saying "we've been so wrong in the last two to three years we've learnt our lesson".
He would update the market on trading conditions at the company's first-half results at the end of the year.
Fisher & Paykel Appliances shares closed up 12c at $3.48.
Chairman Gary Paykel said outside the New Zealand and Australian markets, the company had record sales growth.
The New Zealand market had declined in size, but Fisher & Paykel had held market share at target levels. Trading in Australia was steady, with increased market share.
Bongard said the company's goal to have sales split over geographic areas was becoming a reality.
"This strategy lessens the risk of both economic and seasonal factors," said Bongard.
He said Fisher & Paykel aimed to increase European sales over the next four to five years.
Paykel was keen to stress the finance business, which includes the Farmers store card and Q Card, had a strong balance sheet and consistent earnings.
Recent high-profile finance company failures had affected investor confidence, said Paykel, but Fisher & Paykel's retail debentures had high levels of reinvestment.
