F&P Appliances posts $82m loss

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Fisher & Paykel Appliances says due to volatile market conditions its normalised annual profit may be lower than previously forecast.

The whiteware maker made this comment with its interim results out today which show an $82.4 million net interim loss following a range of one-off costs including a $55.6m asset impairment and fair value write down charge, after tax, on F&P's North American operations.

After removing the one-off costs, F&P said its normalised earnings showed a loss for the six months to September of $847,000.

Although the first-half trading performance was below expectations, F&P said projected earnings for the second half indicated a recovery in its appliances business.

However, the group said it now expected normalised net profit for the March 2010 year to be between $16m and $23m compared to its September forecast between $20m and $23m.

And due to the impairments and fair valuation write-downs associated with its North American business, F&P said it now expected a net loss of between $58m and $65m. In September the company forecast a full-year net loss of between $2m and $5m.

Half-year group revenue, meanwhile fell 16 percent to $584 million.

Operating revenue from F&P's appliances operations fell by $115.3m to $508.2m with F&P Finance's revenue down 3 percent to $66.35m.

F&P is coming off a terrible year in which it was forced to raise $200.5 million and take on Chinese rival Haier as a cornerstone shareholder.

This followed a debt blow-out and subsequent breach of its banking covenants.

The company said yesterday chairman Gary Paykel would step down but stay on the board as a director. Former Fletcher Building CEO Ralph Waters has taken over as chairman.