RESEND: F&P Healthcare raises earnings forecast on weaker kiwi
By Gavin Evans
Aug. 23 (BusinessDesk) - Fisher & Paykel Healthcare Corp has raised its full-year earnings forecast by about $5 million on the back of strong sales growth and the weaker New Zealand dollar.
The firm sells hospital equipment and personal sleep apnoea products in about 120 countries and gets only about 1 per cent of its sales in New Zealand.
Chief executive Lewis Gradon said the recent weakening of the kiwi dollar was a major driver of the earnings upgrade. The kiwi recently traded at 66.75 US cents, and hs dropped about 6 percent so far this year.
At current exchange rates, operating revenue for the six months ending Sept. 30 of $510 million should deliver a net profit of about $95 million. Assuming an exchange rate of 67 US cents for the rest of the year, those measures would rise to $1.07 billion and $215 million respectively for the year ended March 2019, the company told shareholders today.
The firm’s shares rose 6 cents to $15.30 on the NZX, taking their gain this year to almost 9 per cent.
F&P Healthcare increased net profit by 12 percent to $190 million in the March year. Operating revenue climbed 10 percent to $980 million.
In May the firm had forecast current year earnings of $210 million, assuming an exchange rate of 69.50 US cents and operating revenue of $1.05 billion.