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

 

FPH announces Mexico manufacturing expansion

FPH lifts earnings guidance, announces Mexico manufacturing expansion

Fisher & Paykel Healthcare Corporation Limited (NZSX:FPH, ASX:FPH) announced today that it had raised its earnings guidance and will expand its manufacturing facility in Tijuana, Mexico.

The company now expects net profit after tax to be approximately NZ$97 million for the financial year ending 31 March 2014, assuming a continuation of current exchange rates. At its previous guidance update in November 2013, the company said it expected full year net profit to be in the range of NZ$90 million to NZ$95 million.

“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”, commented Michael Daniell, Fisher & Paykel Healthcare’s CEO.

“Operating margin has continued to improve as a result of product mix, operating efficiency gains and manufacturing at our Mexico facility”.

The company also announced that it will expand its available manufacturing area in Tijuana, Mexico.

The NZ$4 million fit-out will increase the Mexico facility manufacturing area by two thirds and will accommodate the installation of additional manufacturing equipment over the next three years for products such as breathing systems and masks. The company expects the plant to be manufacturing approximately half of the company’s consumable product volume within three years.

“We have brought forward the expansion of the Tijuana facility to ensure that we can meet anticipated demand as a result of strong customer acceptance of products such as our new masks and Optiflow oxygen therapy system”, said Mr Daniell.

“Our focus on medical devices which can improve the effectiveness and efficiency of care supports the increasing emphasis of health systems on patient outcomes. For example, in the United States later this year, Medicare will begin to penalise hospitals for excessive chronic respiratory patient readmissions. We believe that this will increase the demand for our products which can help to improve care in the home for patients with chronic respiratory disease”.

“We are also continuing to invest at our site in Auckland, with a number of exciting new product platforms and associated manufacturing lines currently being developed”, concluded Mr Daniell.


ends

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Water: Farming Leaders Pledge To Help Make Rivers Swimmable

In a first for the country, farming leaders have pledged to work together to help make New Zealand’s rivers swimmable for future generations. More>>

ALSO:

Unintended Consequences: Liquor Change For Grocery Stores On Tobacco Tax

Changes in the law made to enable grocery stores to continue holding liquor licences to sell alcohol despite increases in tobacco taxes will take effect on 15 September 2017. More>>

Back Again: Government Approves TPP11 Mandate

Trade Minister Todd McClay says New Zealand will be pushing for the minimal number of changes possible to the original TPP agreement, something that the remaining TPP11 countries have agreed on. More>>

ALSO:

By May 2018: Wider, Earlier Microbead Ban

The sale and manufacture of wash-off products containing plastic microbeads will be banned in New Zealand earlier than previously expected, Associate Environment Minister Scott Simpson announced today. More>>

ALSO:

Snail-ier Mail: NZ Post To Ditch FastPost

New Zealand Post customers will see a change to how they can send priority mail from 1 January 2018. The FastPost service will no longer be available from this date. More>>

ALSO:

Property Institute: English Backs Of Debt To Income Plan

Property Institute of New Zealand Chief Executive Ashley Church is applauding today’s decision, by Prime Minister Bill English, to take Debt-to-income ratios off the table as a tool available to the Reserve Bank. More>>

ALSO: