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F&P Appliances shares slump 10% after profit warning

Fisher & Paykel Appliances shares (NZX:FPA) have fallen 10.5%, dropping 6c to 51c after a profit warning.  The company today revised down its full year earnings guidance for the appliances' business as a result of "deteriorating" retail

Niko Kloeten
Fri, 17 Dec 2010

Fisher & Paykel Appliances shares (NZX:FPA) have fallen 10.5%, dropping 6c to 51c after a profit warning.  

The company today revised down its full year earnings guidance for the appliances' business as a result of "deteriorating" retail trading conditions.

F&P's trading result was below expectations in November, although this did include a number of unfavourable one-off items.

In addition to weaker demand for F&P's products, market conditions have also adversely affected F&P's third party component and technology sales.

If the earnings trend in November continues, F&P's full year earnings before interest and taxation will be between $15 million and $25 million.

However, the company says earnings before interest and taxation for Fisher & Paykel Finance is expected to remain unchanged at around $35 million. 

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 (for both businesses combined).

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Niko Kloeten
Fri, 17 Dec 2010
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F&P Appliances shares slump 10% after profit warning
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