ferret's stock to watch: fisher & paykel appliance

Ferret's Stock to Watch: FISHER & PAYKEL APPLIANCES LTD
07:56, Friday, 20 May 2005

A GLITCH IN PROFIT AS COMPANY BUILDS UP INTO GLOBAL FORCE

Sydney - Friday - May 20: (RWE Aust Business News)
**************************************************

OVERVIEW
********

Fisher & Paykel Appliance Holdings (FPA) has become well known
around the globe for electrical appliances, very much like General
Electric.

It doesn't matter a fig where a company is domiciled any more, as
long it has the right culture and drive to compete in any part of the
world.

Fisher and Paykel has created a culture where people and
innovation can flourish.

Its people and their ideas are the key to the company's success,
proclaims its website.

They combine with three key factors to contribute to growth:

* an ongoing commitment to research and development;

* an environment that allows our people to develop innovative
ideas;

* A board of directors that gives these ideas the time and
capital to meet Fisher and Paykel's long-term goals.

Yesterday Fisher & Paykel Appliances Holdings Ltd reported a
19.6 per cent fall in profit to $68.6 million in the year to March 31.

This was slightly above the guidance given to the market on
February 2.

Highlights for the year included total group revenue exceeding $1
billion for the first time; record Appliances unit sales; a continued
growth in Appliances revenues in the US; the acquisition of Dynamic
Cooking Systems Inc and the strong performance of the Finance Group.

Appliances sales units continued to grow to a record high of
1,267,600 units compared with 1,196,700 units for the previous year.

The recently acquired Dynamic Cooking Systems (DCS) business
traded well ahead of acquisition expectations.

Final dividend is a fully franked 9c and brings the total
dividend for the year to 18c.

Non-resident shareholders will receive a supplementary dividend
of 1.588c.

The final dividend will be paid on June 13.

SHARES PRICE MOVEMENTS
----------------------

Shares of Fisher and Paykel yesterday rose 13c to $2.74. Rolling
high for the year has been $4.42 and low $2.43. Dividend is 18.52c a
share while the yield is an attractive 6.76 per cent.

The company says continued strong growth is expected in the US
through both the Fisher & Paykel and DCS brands.

The addition of DCS has accelerated the acceptance of the Fisher
& Paykel brand at trade level.

Consumer awareness of both brands has increased and planned
future promotions will continue to grow this.

The transformation of the DCS manufacturing facility at
Huntington Beach, Los Angeles, is on schedule and further substantial
improvements will be made over the next year.

The business is expected to meet the profit targets as
previously advised ($US7.7 million EBIT for the 2005 calendar year).

Notwithstanding some expected further softening in the markets
in both Australia and New Zealand, the business is poised for volume
growth.

As the business adjusts to the effects of higher raw material
prices and currency movements, earnings in the 2005/06 first half are
expected to be lower than the previous comparable period.

Directors expect that after-tax earnings for the full 2005/06
financial year will be similar to the previous year.

BACKGROUND
**********

Fisher & Paykel Appliances Holdings Ltd is listed on the New
Zealand and Australian Stock Exchanges.

The Registered Office is located at 78 Springs Road, East Tamaki,
Auckland, New Zealand.

It's the parent company for Fisher & Paykel Appliances Ltd and
Fisher & Paykel Finance Ltd.

Fisher & Paykel Appliances Ltd designs, manufactures and markets
a range of innovative household appliances developed with a commitment to
technology, design, user friendliness and environmental awareness.

Its manufacturing facilities are located in Auckland and Dunedin
in New Zealand, and Cleveland in Queensland.

In October 2004 the company acquired Dynamic Cooking Systems Inc
(DCS), a leading US manufacturer and distributor of premium cooking
appliances.

Fisher & Paykel Appliances has international sales offices
located in Australia, the US, Singapore and the UK.

The company's beginning goes back to 1934 when Maurice Paykel and
Woolf Fisher (later Sir Woolf) joined forces to import domestic
refrigerators into New Zealand.

Their enterprising spirit was challenged soon after when
government-imposed tariffs required that appliances be manufactured in
the country.

So, the Fisher & Paykel manufacturing story began.

The company started by manufacturing the designs of other
appliance companies under licence.

The isolation of New Zealand from the major industrial countries
of the world, and the pioneering spirit established by the founders,
resulted in an innovative culture that challenged conventional appliance
design.

After many years of optimising designs, the skilled team of
engineers began incorporating sophisticated electronics from the emerging
computer industry with new-generation electric motors from the space
industry to build appliances that performed better using fewer precious
resources.

ENDS

>>>>>>>>>>>>>>>>>>>>

I don't hold FPA