On top of upgrading its expected profits, Fisher & Paykel Healthcare is providing plenty of clues that its future is exceptionally bright, despite the New Zealand dollar remaining very strong.
The healthcare products company says net profit for the year ending March should be about $97 million.
Its previous guidance was for a result between $90 million and $95 million, based on the New Zealand dollar exchange rate remaining at US83 cents. On Wednesday morning the Kiwi was trading at 83.15 US cents.
Managing director Mike Daniell says demand for his company's products is so strong it is bringing forward the expansion of its plant in Mexico, which is expected to be producing half its consumable products by 2017.
"We had only fitted out a little over half of that building, and we've now committed to now fitting out the other almost half," he says.
"We're doing that a little earlier than we had originally planned to ensure that we have do have what we expect to be quite strong demand."
The company also has some "quite exciting" product platforms under development in New Zealand and is planning manfacturing lines for those in Auckland.
And it plans to cater to changes in American health systems, where hospitals may soon face penalties if patients have to return for further treatment, too soon or too often.
For chronic respiratory patients F&P Healthcare is developing a new device which American hospitals can give them to use at home, to help keep those patients at home.
Fisher & Paykel Healthcare's share price rose as high as $2.20 on Tuesday, matching its level on 23 January, which was its highest since February 2007.
