F and P half profit near double

Press, 6 November 1984, Page 24

F and P half profit near double

Fisher and Paykel, Ltd, the domestic appliance manufacturer, almost doubled its profit for the six months ended September 30 compared with the same period last year. Fisher and Paykel said yesterday that total firsthalf profit was $14,289,000 (last year $7,385,000). Net operating profit of $19,530,000 ($8,005,000) rose 144 per cent. Domestic sales at SISOM ($102.8M) were 46 per cent higher while exports at $26.2M ($19.2M) were up 36 per cent. Finance company receipts added S9.BM (SB.IM) to total income. The profit is after provision for tax of $5.3M ($661,000). No dividend is announced, as an interim dividend of 6c a share from realised capital profits was paid in October. » income of $218,000 does not include earnings from the recent 50 per cent acquisition of Isothermal Systems, Inc., of California. Provision for depreciation is $4.6M (compared with $3.9M for the 1983 year end). Interest paid amounted to _$l.3M (SI.IM) for the group’s trading activities and $3.9M (S4M), by F and P Finance, Ltd. I The company said record sales levels were achieved as a result of an improved economy and because of the expectation

of a devaluation. The July devaluation gave a strong lift to sales as buyers sought products at pre-devaluation prices, particularly those imported fully-assembled, such as videos and microwave ovens. These higher-than-normal sales contributed to a record first half profit, a record for any six months trading in the company’s history. Sales for October continued at a high level. The forward order book is satisfactory, and the second six months has normally been F and P’s best selling period, the directors trading conditions are seriously affected by the impending budget, we expect a very satisfactory result for the full year. It is clear that we are now facing a more competitive market place as a result of CER and the Government’s avowed intention to create a more competitive scene, embracing all business sectors. “This policy correctly and clearly administered is a challenge we welcome because of greater opportunities in an expanded market place. progress has been made in the group’s pursuit of continuous improve- , ment of our products, our efficiency, productivity and ’ quality. Capital expenditure so vital to achieving our objectives, is on-going and will, we ■ are confident, prove rewarding to our shareholders, employees , and to the public.”