Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


F&P Healthcare raises annual profit guidance for 2nd time

F&P Healthcare raises annual profit guidance for 2nd time, citing increased demand, better margins

By Tina Morrison

Feb. 18 (BusinessDesk) – Fisher & Paykel Healthcare Corp, which makes breathing masks and respirators, raised its full-year profit guidance for a second time on increased demand for its devices to treat the condition obstructive sleep apnea and as its margins improved.

Profit is likely to be $97 million in the year ending March 31, from a previous estimate of $90 million to $95 million, and 26 percent ahead of its 2013 profit of $77.1 million, the Auckland-based company said in a statement.

Fisher & Paykel Healthcare, which competes with Resmed and Respironics, is improving profitability from new products and as it gains from operating efficiencies. The company plans to spend $4 million to expand its manufacturing area by two thirds at its plant in Tijuana, Mexico, it said today.

“Demand during the second half has been very encouraging, particularly for our Simplus, Eson and Pilairo Q masks, which are used for the treatment of OSA,” said chief executive Michael Daniell. “Operating margin has continued to improve as a result of product mix, operating efficiency gains and manufacturing at our Mexico facility.”

Fisher & Paykel said the expansion of its Mexican plant will accommodate the installation of additional manufacturing equipment over the next three years for products such as breathing systems and masks. It expects the plant to be manufacturing about half of its consumable product volume within three years.

The company’s stock is rated an average ‘hold’ according to analysts polled by Reuters. It is the third-best performing stock on New Zealand’s benchmark NZX50 index the past year, having gained 72 percent, and last traded at $4.05.

Fisher & Paykel, which exports about 99 percent of its products, said the latest forecast assumes a continuation of current exchange rates. The company first raised its annual profit forecast in August, following an initial estimate in May for earnings of $85 million to $90 million.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Half Empty: Fonterra's 2017 Opening Forecast Below Expectations

Fonterra Cooperative Group raised its forecast farmgate milk payout for next season by less than expected as the world's largest dairy exporter predicts lower prices will crimp production and supply will pick up. The New Zealand dollar fell. More>>

ALSO:

Pest Control: Mouse Blitz Team Leaves For Antipodes

The Million Dollar Mouse project to rid Antipodes Island of mice is underway with the departure of a rodent eradication team to the remote nature reserve and World Heritage Area. More>>

Gongs Got: Canon Media Awards & NZ Radio Awards Happen

Radio NZ: RNZ website The Wireless, which is co-funded by NZ On Air, was named best website, while Toby Manhire and Toby Morris won the best opinion general writing section for their weekly column on rnz.co.nz and Tess McClure won the best junior feature writer section. More>>

ALSO:

Pre-Budget: Debt Focus Risks Losing Opportunity To Stoke Economy

The Treasury is likely to upgrade its forecasts for economic growth in Budget 2016 next week but Finance Minister Bill English has already signalled that more of his focus is on debt repayment than on fiscal stimulus or tax cuts... More>>

ALSO:

Fulton Hogan's Heroes: Managing Director Nick Miller Resigns

Fulton Hogan managing director Nick Miller will leave the privately owned construction company after seven years in charge. The Dunedin-based company has kicked off a search for a replacement, and Miller will stay on at the helm until March next year, or until a successor has been appointed and a transition period completed. More>>

ALSO:

Gordon Campbell: On Electricity, Executions, And Bob Dylan

The Electricity Authority has unveiled the final version of its pricing plan for electricity transmission. This will change the way transmission prices (which comprise about 10% of the average power bill) are computed, and will add hundreds of dollars a year to power bills for many ordinary consumers. More>>

ALSO:

Half Empty: Fonterra NZ, Australia Milk Collection Drops In Season

Fonterra Cooperative Group says milk collection is down in New Zealand and Australia, its two largest markets, in the first 11 months of the season during a period of weak dairy prices. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news