Sept. 24 (Bloomberg) -- Fisher & Paykel Appliances Holdings Ltd., New Zealand’s largest maker of cookers and refrigerators, said it expects a full-year loss because of weak U.S. sales.

The net loss will be as much as NZ$5 million ($3.6 million) in the year ending March 31, compared with a previously forecast NZ$11.7 million profit, the Auckland-based company said in a statement. Excluding unusual items, earnings will be NZ$20 million to NZ$23 million, down from a previously forecast NZ$32.8 million, it said.

Fisher & Paykel raised NZ$149.2 million from shareholders in June and sold a 20 percent stake to China’s Haier Corp. to reduce debt after plunging sales threatened its lending agreements. Higher than expected levels of competition and continued depressed market conditions means full-year U.S. sales will be 12 percent lower than forecast in May, it said.

The company has been in talks with its bankers because trading in the six months to Sept. 30 is expected to breach debt covenants, it said.

The company is reducing debt through costs cuts and the recent sale of property in Auckland. Given the debt reduction achieved and projected, the board expects the revised earnings forecasts will be accepted by the banks, it said.

To contact the reporter on this story: Tracy Withers in Wellington at twithers@bloomberg.net.

Last Updated: September 24, 2009 02:48 EDT