Fisher & Paykel shares climb on swing to profit

Fisher & Paykel shares climb on swing to profit

Fisher & Paykel Appliances (ASX:FPA) swung to a net profit of NZ$33.5 million ($27.2 million) for the year ending in March.

The major appliance manufacturer had reported a loss of NZ$83.3 million the year before.

FPA shares grew 9.52% in Friday's ASX trading to $0.460 on news of the outcome.

Fisher & Paykel partly attributed the turnaround to improved operational efficiency and lower interest costs.

But revenue fell 4% to NZ$1.12 billion, with operating revenue from appliances declining 5.5%.

The company said higher sales volumes, including an improved performance in Australia, were offset by price reductions during the period.

The Finance group, which provides financial products and services to Fisher and Paykel's New Zealand retailer distributors, performed more strongly.

Finance group ebit grew to NZ$34.7 million, from the prior year's NZ$28.9 million, even as the New Zealand retail market “remained difficult,” Fisher & Paykel said.

The company flagged a planned capex of $44 million for the current year due to investments in the appliances business, with the bulk of spending to go to new product development as well as a technology supply agreement with Haier.

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