Shares in Fisher Paykel Appliances have fallen more than 6%, after it warned earnings from its appliances division could more than halve in the next year.
The whitewear maker is forecasting pretax earnings for its appliances division of $10 to $20 million in 2012, down from $23 million in 2011.
Fisher Paykel Appliances chief executive Stuart Broadhurst says foreign exchange hedging losses, rising raw material costs and weak retail sales are already affecting the company.
He says the company had a very strong first quarter, but from the later parts of July into August there was a marked drop in demand in both Australia and New Zealand.
Earnings within its finance arm are expected to fall slightly, taking the group's total full year earnings to between $42 and $52 million.