F&P Healthcare lifts guidance 3% on falling Kiwi

Fisher & Paykel Healthcare chief executive Michael Daniell
Fisher & Paykel Healthcare 12-month price history (NZX.com)

Fisher & Paykel Healthcare [NZX: FPH] raised its annual profit forecast by 3 percent, saying the New Zealand dollar is boosting the value of respiratory and breathing apparatus sold overseas. The shares rose to the highest in at least two decades.

Profit is now expected to be $100 million in the year ended March, 31, 2015, based on an exchange range of the kiwi at 84 US cents, from its May guidance of flat earnings of $97 million, with the currency calculated at 86 US cents, the Auckland-based company said in a statement. Revenue would be $650 million, up from its May forecast of $640 million, and 4.3 percent above 2014 sales.

The lift to its profit forecast is still at a slower pace of growth than the previous year, when annual profit rose 26 percent to $97.1 million, on a 12 percent gain in sales to $623.4 million.

The medical device manufacturer exports 98 percent of its product and blames the historically high kiwi/US dollar cross with crimping earnings growth. The local currency climbed to 88.35 US cents in July, close to its post-float high of 88.40 cents, but has since fallen some 4 US cents, to trade recently at 84.16 US cents.

At current exchange rates the company forecast revenue to be up about 14 percent to $315 million in the six months ending Sept. 30, for a 60 percent profit increase to $45 million.

The company's shares rose 1.5 percent to $4.90.

(BusinessDesk)


Got a question about this story? Leave it in Comments & Questions below.

This article is tagged with the following keywords. Find out more about MyNBR Tags

NZ Market Snapshot

Forex

Sym Price Change
USD 0.7241 0.0000 0.00%
AUD 0.9500 0.0000 0.00%
EUR 0.6450 0.0000 0.00%
GBP 0.5585 0.0000 0.00%
HKD 5.6173 0.0000 0.00%
JPY 73.0760 0.0000 0.00%

Commods

Commodity Price Change Time
Gold Index 1337.5 1.600 2016-09-23T00:
Oil Brent 46.5 -1.730 2016-09-23T00:
Oil Nymex 44.5 -1.790 2016-09-23T00:
Silver Index 19.8 -0.290 2016-09-23T00:

Indices

Symbol Open High Last %
NZX 50 7311.7 7328.2 7311.7 -0.20%
NASDAQ 5327.4 5329.7 5339.5 -0.63%
DAX 10662.5 10675.6 10674.2 -0.44%
DJI 18377.4 18383.8 18392.5 -0.71%
FTSE 6911.4 6920.2 6911.4 -0.03%
HKSE 23836.6 23846.7 23759.8 -0.31%
NI225 16759.8 16808.6 16807.6 -0.32%
ASX 5374.5 5434.3 5374.5 1.06%