18 Nov 2008

Fisher and Paykel posts loss after shifting offshore

6:36 am on 18 November 2008

Fisher & Paykel Appliances has posted a $7.3 million loss for the half year, due to the cost of shifting its manufacturing to Thailand and Mexico.

Excluding one-off items, its profit decreased 24% to $22.4 million dollars in the September half year, compared with the same period a year earlier.

Fisher & Paykel Appliances starting moved production to low-cost countries earlier this year, costing it $41 million in its latest half-year results.

Meanwhile, the economic downturn has led households to reduce their spending on big-ticket items such as stoves, washing machines and dishwashers.

Fisher & Paykel Appliances managing director, John Bongard, says the economic downturn hit sales in all markets except Australia.

The one bright spot is cheaper prices for the company's raw materials, like steel and oil.