Market close: NZ shares fall, F&P Healthcare drops after earnings
BUSINESSDESK: New Zealand shares fell, led by Fisher & Paykel Healthcare, after the maker of breathing masks and respirators reported shrinking margins and the impact of a strong kiwi dollar on export sales.
Other exporters, including Rakon and Nuplex Industries, also tumbled.
The NZX 50 Index fell 9.95 points, or 0.3%, to 3486.23. Within the index, 26 stocks fell, 13 rose and 11 were unchanged. Turnover was $90.4 million.
F&P Healthcare fell 5.8% to $2.29. Chief executive Michael Daniell today forecast 2013 profit would be $62 million to $70m, from the $64.1m reported for the 12 months ended March 31.
The forecasts assume the New Zealand dollar trades in a range of 75 US cents to 80 cents for the remainder of the current year. The kiwi was last at 75.31 US cents.
"The guidance for next year's profit was disappointing - there really wasn't much change," said Mark Lister, head of private wealth research at Craigs Investment Partners.
People “thought they might have greater growth with the currency coming down. They are definitely sensitive to the currency - if it was to carry on going down thing will get better and easier for them".
Rakon, which sell crystal oscillators used in mobile phones and navigation systems, fell 2% to 46 cents. Nuplex, the specialty chemicals company, declined 1.3% to $2.35.
Tower rose 1.2% to $1.64 after the insurance company controlled by Guinness Peat Group, posted an 83% gain in first-half profit.
Its policy liabilities dropped to $671,000 in the period from $8.4m a year earlier, while revenue climbed 14% to $295.7m.
"It's not far away from expectations - the headlines looks wonderful but it is probably more about it being low last year with the Christchurch earthquakes," Mr Lister said.
"The headline sounds better than what the progress is which is why the share price is relatively unchanged."
Pyne Gould Corp, the nation’s biggest rural services company, rose 3.4% to 32 cents, which Mr Lister said may reflect the kiwi dollar’s decline in the past month and the boost that provided for agricultural exports.
Heartland New Zealand rose 4.2% to 50 cents, the biggest gain on the NZX 50 today. Cavalier, the carpet maker and wool scourer, rose 3.4% to 32 cents.
Among the biggest stocks, Fletcher Building rose 0.2% to $6.15 and Contact Energy rose 1% to $4.85. Telecom, the biggest company on the benchmark index, rose 0.8% to $2.56.