Sharp fall for F&P shares in early trade

Shares in Fisher & Paykel Appliances fell sharply in early trading after the company issued a profit warning following weak sales in the United States.

The company said its net loss for the year to the end of next March would be as much as $5 million, compared to a previously forecast $11.7m profit.

Excluding unusual items, earnings would be $20m to $23m, down from a previously forecast $32.8m.

Shortly after the stock exchange opened today Appliances shares were down 12c, or 16.2 per cent, to 62.

Around 10.15am the benchmark NZX-50 index was down 6.88 points to 3123.54, after falling 17.5 points yesterday.

Hallenstein Glasson shares were down 5c early to $3.00, having risen 11c yesterday after reporting a 19.3 per cent fall in profit but expressing hope it will not have to discount as much as the economy recovers.

Port of Tauranga fell 9c to $6.35, Sanford lost 4c early to $4.95, Cavalier Corporation was down 3c to $2.70, Freightways lost 3c to $3.11, Mainfreight was down 3c to $5.22 and Tourism Holdings fell 3c to 66c.

The few shares rising early included Contact Energy, up 4c to $5.80, Ryman Healthcare up 2c to $1.84, and Auckland Airport up 2c to $1.87.

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In the US, stocks fell as signs of weakness in housing and investors' worries that authorities might be curbing stimulus efforts too soon sparked caution.

World central banks said they would scale back infusions of US dollars into their banking systems, fuelling unease triggered a day earlier when stocks sold off following the US Federal Reserve's decision to slow purchases of mortgage debt.

Meanwhile, sales of existing homes in the US fell 2.7 per cent to an annual rate of 5.1m units, after four months of gains.

The Dow Jones industrial average dropped 0.4 per cent to 9707.44, the Standard & Poor's 500 Index fell 1 per cent to 1050.78, and the Nasdaq Composite Index slid 1.1 per cent to 2107.61.

- NZPA