Radio New Zealand - Te Reo Irirangi o Aotearoa

Shares rise after appliance company posts profit

Updated at 12:22 pm on 27 May 2011

Shares in Fisher & Paykel Appliances jumped almost 11% on Friday after the company returned to profit.

The whiteware manufacturer made a profit of $33 million in the year to the end of March, a turnaround on a loss of $83 million in the previous report.

Last year's losses were due to restructuring and interest costs. Chief executive Stuart Broadhurst says this year's profit have been driven by debt reduction and strong returns from the company's finance arm.

With appliance sales falling 5%, Mr Broadhurst says the global market remains tough, which has not been helped by the need to raise prices to compensate for rising raw material costs.

However, he says Fisher & Paykel Finance is probably New Zealand's strongest finance company.

Mr Broadhurst says the company will soon start supplying competitors with components that it's previously guarded, but he's confident new innovation will help the company to maintain an advantage.

Fisher & Paykel Appliances shares have risen 6 cents to 61.5c each.

No dividend was declared.

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