UPDATE 1-NZ's F&P Healthcare: 2009 earnings may be higher
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WELLINGTON, Oct 22 (Reuters) - New Zealand medical equipment manufacturer Fisher & Paykel Healthcare Ltd (FPH.NZ) (FPH.AX) said on Wednesday its 2009 operating profit could be higher than previously forecast due to a falling currency.
Responding to a query from the Australian Stock Exchange about a recent surge in its share price, the company said its previous forecast of operating profit of about NZ$86 million ($61 million) for the year to March 2009, could be too low.
"Given the New Zealand dollar has fallen further in value, that would imply operating profit for the year ending 31 March 2009, and possibly more importantly years further forward, would have the potential to be higher again," the company said in a statement.
Shares in F&P Healthcare, a top-10 company, last traded down 1.8 percent at NZ$3.21. The stock has gained 7 percent over the past two weeks, compared to a 3 percent drop in the benchmark NZ50 index .NZ50 over the same period.
The company also said recent target price upgrades by brokers to around NZ$3.57 a share may have helped spur buying interest.
The New Zealand dollar has lost about 12 percent over the past month NZD=D4, driven by global market turmoil and the expectation of sharply lower interest rates.
F&P Healthcare, which makes products to treat respiratory conditions, has about 60 percent of its sales in U.S. dollars.
The company, created from the split of manufacturer Fisher & Paykel Industries in 2001, competes with Respironics Inc, recently bought by Philips Electronics (PHG.AS), and ResMed Inc (RMD.N) (RMD.AX).
In the year to March 2008, operating profit fell 27 percent to NZ$58.1 million from 2007, mainly because of a strong kiwi dollar during the period.
In July, Managing Director Mike Daniell told Reuters he expected sales to grow at 15 percent a year, and that the company would build a new factory to keep up with demand.
Earlier on Wednesday the company said it would introduce a new range of respiratory masks and flow generators. ($1=NZ$1.65) (Reporting by Adrian Bathgate)
