17 Dec 2010

Fisher and Paykel downgrades earnings forecast

1:25 pm on 17 December 2010

Fisher & Paykel Appliances has cut its earnings forecast because of deteriorating trading conditions.

The listed company says weak demand and a tough market meant trading was below expectations in November, although that included some unfavourable one-offs.

It now expects full year pre-tax earnings to be between $15 million and $25 million.

Last month it had forecast a range of $28 million - $35 million.

Chief executive Stuart Broadhurst says trading in the New Zealand and Australian markets is particularly slow.

He says difficult market conditions have also affected third party sales of components and technology.

The earnings forecast for its finance business remains unchanged at $35 million.

Shares in the company fell 5 cents to 52 cents at midday on Friday.