UPDATE 2-F&P H'care shares drop as outlook disappoints

* FY net profit jumps 76 pct on sales, local currency

* Sees further strong sales growth

* But shares fall 6.5 pct as 2010 outlook disappoints

* To invest in new plant this year

* Medical device market holding up well in downturn

By Adrian Bathgate

WELLINGTON, May 26 (Reuters) - New Zealand medical equipment maker Fisher & Paykel Healthcare Ltd (FPH.NZ) posted sharply higher full-year profit on strong sales growth, but its shares tumbled 6.5 percent as its 2010 outlook disappointed.

Its forecast for 2009-10 net profit of NZ$75-NZ$80 million was more than a quarter below an average forecast of NZ$102 million by seven analysts surveyed by Reuters Estimates.

Grant Williamson, a director at brokerage Hamilton Hindin Greene, said the expected shortfall was due partly to F&P flagging the costs of overseas expansion, including building a new manufacturing plant in Mexico.

"I wouldn't expect the share price to lose ground from here. I think the damage has been done and now its priced for growth," Williamson said.

F&P Healthcare CEO Michael Daniell told reporters the difference between market expectations and the company's forecast also reflected one-off gains in 2009, exchange rate assumptions and the expansion costs.

F&P Healthcare shares fell 6.5 percent to a 6-week low of NZ$2.87. By 0404 GMT, the stock was quoted at NZ$2.90, while the broader market .NZ50 was flat.

F&P Healthcare, which makes products to treat breathing disorders, and humidification and neo-natal care systems, said it had seen very strong sales growth which, combined with a sharp fall in the New Zealand dollar NZD=, had pushed up full-year net profit by 76 percent. It said sales growth would continue into the next financial year.

Year-to March net profit rose to NZ$62.2 million ($38.6 million) from NZ$35.3 million a year earlier, just ahead of analysts' forecasts for NZ$61.8 million.

The company, created from the split of manufacturer Fisher & Paykel Industries in 2001, is based in New Zealand, but derives around half its revenue from the United States, where it competes with Respironics Inc, a division of Philips Electronics PHS.AG, and ResMed Inc (RMD.N) (RMD.AX).

The New Zealand dollar NZD= lost about 28.5 percent during the financial year.