F&P Healthcare Forecasts Full-Year Earnings Increase on Sales

Nov. 23 (Bloomberg) -- Fisher & Paykel Healthcare Corp., a New Zealand maker of breathing masks and hospital equipment, forecasts full-year profit will rise on increased sales and cheaper production from a new plant in Mexico.

Net income will be as much as NZ$67 million ($50 million) in the year ending March 31, the Auckland-based company said today, after announcing first-half profit of NZ$28.3 million. Profit was NZ$63.9 million in the year earlier excluding a one-time provision for tax required by a government policy change.

Fisher & Paykel Healthcare sells its products in more than 120 countries, and earnings are curbed by gains in the New Zealand dollar. The company is making about a fifth of its consumable products in a new plant at Tijuana, Mexico as it seeks to reduce costs.

“We continue to see benefits from Mexico manufacturing as well as other efficiencies,” Chief Executive Officer Mike Daniell said in the statement.

The company’s forecasts assume the currency will be near 75 U.S. cents during the second half of the year. The currency bought 74.75 cents in Wellington. Were the currency to be nearer 80 U.S. cents in the six months through March, full-year net may be as low as NZ$62 million, the company said.

Currency conditions were unfavorable in the first half, the company said. Revenue rose 18 percent in U.S. dollar terms yet increased 3 percent to NZ$252 million because of the exchange rate effects, it said.

Full-year operating revenue is forecast to be NZ$520 million to NZ$530 million, the company said.

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

To contact the editor responsible for this story: Edward Johnson at ejohnson28@bloomberg.net