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Fisher & Paykel Healthcare respiratory aid product - Source: ONE News -
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Fisher & Paykel Healthcare has reported a massive 76% rise in full-year operating profit to $102.4 million for the year ended March 31.
The medical equipment manufacturer - which makes products to treat breathing disorders and patient warmers - says the results reflect strong sales and a favourable exchange rate boosted.
Net profit after tax groew 76% to $62.2 million and operating revenue rose 28% to a record $458.7 million.
Fisher & Paykel Healthcare CEO Michael Daniell says demand for its respiratory humidifier systems was exceptionally strong, and there were substantial hospital orders from the United States.
Around 65% of the company's revenue is generated in the US where it competes with Respironics, a division of Philips Electronics.
The company expects growth to continue, with a forecast net profit in the $75-80 million range for 2010.
Despite the positive result, shares were trading down 5.54% or 17 cents to $2.90 at 10:45am.
Market analyst Baden Carter says this is because the 2010 guidance was lower than the market consensus of $105 million net profit.
The longer term outlook is one of growth though, with the company saying it will invest heavily in expanding its sales and distribution operations offshore, with support centres in four new countries, including Japan.
Daniell says Fisher & Paykel Healthcare will also expand research and development activities and manufacturing capacity in New Zealand, as well as creating a manufacturing facility overseas.
Mexico is a strong contender as a manufacturing base due to its proximity to the US market.
The company declared an unchanged full-year dividend of seven cents per share and will be paid July 9.
Fisher & Paykel Healthcare is a separate company to Fisher & Paykel Appliances which is currently on the media radar over its inflated debt and rumoured talks with a cornerstone investor.
The two companies were created when Fisher & Paykel
Industries split in 2001.
