UPDATE 1-NZ's F&P Healthcare H1 profit up 51% on strong sales
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Wellington, Nov 20 (Reuters) - New Zealand medical equipment maker Fisher & Paykel Healthcare Ltd (FPH.NZ) on Thursday posted a 51 percent rise in first-half profit on strong growth in sales and said it expected to almost double full-year earnings.
The company, whose products include respiratory humidifiers and devices to treat sleep disorders, said it had seen strong demand in particular in its key United States market.
"Demand for our respiratory humidifier systems was exceptionally strong in the first half," said chief executive Mike Daniell in a statement.
Net profit for the six months to Sept. 30 was NZ$28.3 million ($15.4 million) compared with NZ$18.7 million in the same period last year.
It declared an unchanged dividend of 5.4 cents a share.
Shares in Fisher & Paykel Healthcare, which competes against ResMed Inc (RMD.N) and Respironics Inc, closed on Wednesday at NZ$3.12. So far this year the stock has fallen around 11 percent, compared with a 33 percent fall for the benchmark top 50 index .NZ50.
The company said it expected strong sales in the remainder of the year and that, along with a lower New Zealand dollar NZD=, would result in an operating profit of around NZ$100 million and after-tax profit of NZ$60 million.
On Oct. 22 the company said full-year operating profit may be higher than its NZ$86 million forecast, after the sharp drop in the kiwi dollar. Full-year profit for the year to March 2008 was NZ$58.1 million.
Revenue for the first half was up 24 percent on a year ago to NZ$213 million, and in U.S. dollar terms was up 25 percent.
Respiratory and acute care product sales were up 36 percent while sleep disorder product sales rose 14 percent.
The top-10 company, created from the split of New Zealand manufacturing icon Fisher & Paykel Industries in 2001, is based in New Zealand but nearly two-thirds of revenue is made in the United States.
It saw operating profit fall 27 percent in the year to March 2008, largely due to the strength in the kiwi dollar. Since then the currency has fallen around 30 percent. ($1=NZ$1.82) (Reporting by Adrian Bathgate; Editing by James Thornhill)
