Fisher&Paykel Appliances reported a half year normalised profit after tax of $11.3 million up from $800,000 a year earlier, while conditions remained challenging.Despite weaker market demand and increased cost pressures, the company's Appliances busin
Fisher&Paykel Appliances reported a half year normalised profit after tax of $11.3 million up from $800,000 a year earlier, while conditions remained challenging.
Despite weaker market demand and increased cost pressures, the company's Appliances business increased its earnings before interest and tax (ebit) in the six months to the end of September to $6.8 million from $5.7m.
That was due to operational improvements and foreign exchange effects, the company said today.
Appliances' gross margin increased by 4 percent to $140.8m, due to benefits from its global manufacturing strategy and currency, offsetting higher raw material, sea freight and labour costs.
The Finance business reported operating earnings before tax of $18.9m, up 52 percent on the half year result for last year, built on higher net margins and containment of overheads.
Interest charges, excluding the Finance division's operating interest expense, were down 49 percent to $9m due to lower debt levels.
Group net profit was $11.3m compared to a loss of $82.4m a year earlier, with no abnormal items recorded during the latest period, compared to $107m in one-off costs, asset write downs and impairments for the previous corresponding period. Revenue for the latest half year fell 5.9 percent to $550m. No interim dividend was declared
Market conditions were expected to remain "challenging and unpredictable" in the near term, with F&P Appliances lowering its full year ebit to a range between $63m and $70m from an earlier estimation around $78m.
