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Sharp Fall For F&P Appliances After Profit Warning

Contributor:
Fuseworks Media
Fuseworks Media

Wellington, Sept 25 NZPA - Shares in Fisher & Paykel Appliances fell sharply in early trading after the company issued a profit warning following weak sales in the United States.

The company said its net loss for the year to the end of next March would be as much as $5 million, compared to a previously forecast $11.7m profit.

Excluding unusual items, earnings would be $20m to $23m, down from a previously forecast $32.8m.

Shortly after the stock exchange opened today Appliances shares were down 12c, or 16.2 percent, to 62.

Around 10.15am the benchmark NZSX-50 index was down 6.88 points to 3123.54, after falling 17.5 points yesterday.

Hallenstein Glasson shares were down 5c early to 300, having risen 11c yesterday after reporting a 19.3 percent fall in profit but expressing hope it will not have to discount as much as the economy recovers.

Port of Tauranga fell 9c to 635, Sanford lost 4c early to 495, Cavalier Corporation was down 3c to 270, Freightways lost 3c to 311, Mainfreight was down 3c to 522 and Tourism Holdings fell 3c to 66.

The few shares rising early included Contact Energy, up 4c to 580, Ryman Healthcare up 2c to 184, and Auckland Airport up 2c to 187.

In the US, stocks fell as signs of weakness in housing and investors' worries that authorities might be curbing stimulus efforts too soon sparked caution.

World central banks said they would scale back infusions of US dollars into their banking systems, fuelling unease triggered a day earlier when stocks sold off following the US Federal Reserve's decision to slow purchases of mortgage debt.

Meanwhile, sales of existing homes in the US fell 2.7 percent to an annual rate of 5.1m units, after four months of gains.

The Dow Jones industrial average dropped 0.4 percent to 9707.44, the Standard & Poor's 500 Index fell 1 percent to 1050.78, and the Nasdaq Composite Index slid 1.1 percent to 2107.61.

NZPA WGT Reuters gt

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