28 Nov 2009

Fisher and Paykel reports $82m loss

6:41 pm on 28 November 2009

Lower sales and a writedown of its assets have led Fisher & Paykel Appliances to report an $82.4 million loss in the six months to September.

In the same period a year earlier, the appliance maker lost $7.4 million.

Weak demand led it to write off nearly $56m in the value of its North American assets, while one-off restructuring costs totaled $26 million.

Sales fell by nearly a fifth to $508 million, as consumers reined in spending on big ticket items like whiteware, particularly in North America. The firm also lost market share in Australia due to limited stock of some products.

Even after stripping out one-off items, Fisher & Paykel Appliances lost $847,000.

One bright spot has been its finance arm, which lifted earnings by 7% to $12.4m due to higher margins and lower operating costs, which offset an increase in bad debts.

Another is debt, which now stands at $214m after the company raised over $200m from investors earlier this year, while it also sold assets.