Wellington, Aug 23 NZPA - Fisher & Paykel Appliances Ltd talked today about the uncertainties in the New Zealand and the United States markets and its hopes for the Australian and Chinese markets.

The company told shareholders at the annual meeting that it had a positive start to the current financial year and it expected earnings before interest and tax to be at the lower end of the broker consensus range of $45 million to $52 million. Its finance business is performing well and will be at the top end of a consensus range of $25m to $34m.

"The board is increasingly concerned about the risk of further deterioration in economic conditions across our key appliances markets," chairman Ralph Waters said.

"If these concerns are realised, achieving the full year forecast will be challenging. The board will have a much clearer view on this matter at the time of the half year announcement in November 2010."

The company has a new senior management team, has outlined a process of board succession and is developing a relationship with cornerstone shareholder Haier of China.

Former chairman Gary Paykel, a member of the Paykel family who has contributed to the company for 50 years, has indicated that he will remain on the board until his retirement in August 2011.

"We will increasingly focus on Asia, particularly China, as a source of future revenue growth. The company is developing product for the Chinese market which will also be suitable for other markets in Asia," said chief executive Stuart Broadhurst.

"In future we expect to see an increasing proportion of revenue and earnings being generated from the Asian region," he said.

The company also aims to make the combined Fisher & Paykel and Haier brands the dominant player in the Australian market and continues to be optimistic about distribution arrangements in the US with Sears and Lowes.

Net debt as at March 31 was $173 million, compared to $459 million a year ago and it will reduce further when the sale of the former manufacturing site in Brisbane settles and property at East Tamaki in Auckland is sold.

The company has moved manufacturing to low cost countries and reiterated today that this was the right strategy even though its implementation coincided with a sudden and dramatic drop in demand across global markets.

"I am delighted to announce that we have recently entered into a technology licensing agreement with Haier in relation to the development, design and manufacture of direct drive washing machine motors," Mr Broadhurst said.

This was similar to an agreement with Whirlpool.

"I am further pleased to announce that our production machinery business has been successful in tendering for a project to build and commission a bowl line for Haier," he said.