F and P to report $10M profit

Press, 23 July 1986, Page 35

F and P to report $10M profit

PA Auckland Fisher and Paykel Industries, Ltd, says it will report a profit of $10.3 million for the six months to September 30, compared with $5,096,000 for the corresponding period last year. Speaking at his last annual meeting as company chairman, Mr M. Paykel told shareholders they could be assured of a first-half result over double that of last year. He said demand for all products continued to be strong in spite of some weakening in the rural

sector. He said production and sales of the new ECS washing machines were at record levels. Refrigerators were now being produced and sold at satisfactory rates during a period which is normally the off season. Mr Paykel was critical of Government policy, saying Fisher and Paykel strongly opposed any further reduction or phasing out of tariffs on imported whiteware, other than from Australia under CER. He said the recent removal of import controls exposed Fisher and Paykel’s products to world competition. “Without the protection of realistic tariffs local industry will eventualy decline to the point where it is no longer economic to maintain production.” Mr Paykel said his company had invested many millions of dollars establishing first-class facilities to produce products designed and built to the highest standards. He said the Government should sit down with all worthwhile . manufacturers and spell out its future direction in no uncertain terms. Fisher and Paykel, he said, could become an Importer or go offshore to manufacture its products. "Undoubtedly, in the longer term interests of our country, we should continue to foster local manufacture. Any change in direction would see a reduction in staff numbers of a magnitude, in our minds, quite unacceptable.” The board, he said, considered it unwise to make any further capital commitments until Government policy was clearer. Mr Paykel, who founded the company with the late Sir Woolf Fisher in 1934, will be replaced as chairman by Mr W. Wilson. Dr Colin Maiden will be the new deputy chairman. Mr Paykel will remain a director for three years as founder president.