25 May 2011

High dollar dents Fisher and Paykel Healthcare profit

1:56 pm on 25 May 2011

Fisher & Paykel Healthcare's full year profit has fallen by 11% due to unfavourable exchange rates and the costs of expanding its manufacturing plant in Mexico.

The listed medical equipment maker made $63.9 million in the year to the end of March, compared to $71.6 million in the same period a year earlier.

Fisher & Paykel Healthcare chief executive Michael Daniell says the high New Zealand dollar and the development costs associated with its Mexico plant affected the bottom line. One-off costs also reduced profit.

Revenue rose 1% to a record $506 million, however, and Mr Daniell says there's been increasing demand for its respiratory and acute care devices, and products to treat obstructive sleep apnoea.

Mr Daniell expects profit in the 2012 financial year to be between $62 million and $76 million, based on an average exchange rate of 70 - 80 US cents.

The company declared an unchanged dividend of 7 cents.