Heat goes on F&P for changes at the top

Pressure is mounting on Fisher & Paykel Appliances for a change in its board and management after another poor result.

The whiteware-maker, which last week reported a half-year loss of $82.4 million, will hit the road today to talk to analysts and brokers about its fortunes.

But market commentators say there needs to be change at the top for the business to pull itself out of the rut which has seen it report seven downgraded profits in a row.

Last week Gary Paykel stepped down from chairman to director a day before the half-year result was revealed and former chief executive John Bongard, who was seen as being hand-picked by Paykel, left several months ago after a battle with prostate cancer.

The board has yet to name a successor but acting chief executive Stuart Broadhurst is being picked to take over the position permanently.

Tyndall Investment Management's Rickey Ward said the company appeared to be in disarray.

Ralph Waters' temporary step-up to chairman was unusual because he had earlier said he was keen to leave the board.

Ward said market expectations were that Broadhurst would take on the top job but confusion continued because the company kept saying it was still on an international search.

Broadhurst said on Friday the company was on track to name a chief executive by Christmas.

Ward said Fisher & Paykel needed a strong chief to take control.

One analyst said there were few who would disagree that change was needed at the whiteware maker after another poor result.

"It's a sign that change has to happen - otherwise you have the same people at the top."

He said Broadhurst would be supported but said the market would welcome a second in charge from another appliance maker.

Analysts are also expected to ask questions about the group's North American business, the value of which was written down by $55.6 million in the half-year result.

One commentator said Fisher & Paykel was almost unforecastable from an earnings sense because of so much uncertainty around its North American business which made up 30 per cent of the company's earnings.

Broadhurst confirmed it had lost 90 per cent of its business through retail chain Lowes after it refused to lower its prices any further.

The company signed a deal with Sears to sell its appliances but although the deal had been factored into this financial year, it seemed to make little difference to the bottom line.

Fisher & Paykel closed up 2c to 60c yesterday.