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

 

Drones: First Certificate Issued Under New UAV Rules

Transport Minister Simon Bridges and Associate Transport Minister Craig Foss say the first certified flight of an unmanned helicopter under new aviation rules is a great example of how they can enable commercial use. More>>

ALSO:

GE Swedes And Cow Deaths: Plant Analysis Backs Up Earlier Advice

The industry body is recommending that farmers do not feed Herbicide Tolerant (HT) swedes to cows in spring when the animals are in late pregnancy or early lactation. DairyNZ is also advising caution if farmers are considering other leafy varieties. More>>

ALSO:

Statistics: Dairy And Travel Still Our Largest Export Earners

New Zealand earned $2.3 billion more from exports than we spent on imports during the year ended June 2015... total exports of goods and services were $67.5 billion, while total imports were $65.1 billion. More>>

ALSO:

Approval: Air New Zealand And Air China Launch New Alliance Route

Air New Zealand and Air China have today launched joint sales for a new daily direct service between Auckland and Beijing after receiving approval from New Zealand Minister of Transport Hon Simon Bridges to form a strategic alliance. More>>

ALSO:

Money Trading: FX Trader Jin Yuan Finance Warned Over Lack Of Monitoring

Jin Yuan Finance, an Auckland-based foreign exchange trader, has been warned over its lack of anti-money laundering processes in place in the first public notification by the Department of Internal Affairs. More>>

ALSO:

Auckland Surge, Possible Peak: House Values Accelerate At Fastest Annual Pace In 8 Years

New Zealand residential property values rose at their fastest annual pace in eight years in August, pushed higher by overflowing demand in Auckland, which is showing signs speculators think it has reached its peak, according to Quotable Value. More>>

ALSO:

Cash Money: Reserve Bank Launches New $5 And $10 Banknotes

The $5 and $10 final banknotes were revealed at an event at the Bank in Wellington, and will start to be released from mid-October 2015. More>>

ALSO:

Truck Sales Booted: Commerce Commission Files Charges Against Mobile Trader

The Commerce Commission has filed charges against a mobile trader, or truck shop operator, claiming he obtained money from customers by deception and never intended to supply them with the goods they paid for. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news