Fisher & Paykel drops over profit warning
Make us a preferred source
Make us a preferred source on Google
More news: Shares in Fisher & Paykel Healthcare dropped nearly 2% to $23.88 in early trading on the ASX after the health equipment provider outlined a NZ$12 million ($11 million) profit hit.
The profit update was due to the company recalling its Airvo 2 and myAirvo 2 humidifier devices and tax changes in New Zealand that would lift its tax expense.
Fisher & Paykel outlines profit hit on recall, tax changes
The news: Health equipment provider Fisher & Paykel Healthcare has outlined profit hits from a limited product recall as well as tax changes in New Zealand, just days after upgrading its full-year guidance.
The numbers: The company expects a hit of NZD12 million ($11.03 million) from the voluntary limited recall of about 9,000 of its Airvo 2 and myAirvo 2 humidifier devices manufactured before August 2017. It also expects a higher tax expense, not quantified so far, after New Zealand’s parliament passed a bill removing depreciation deductions for commercial and industrial buildings.
The context: The ASX and NZX-listed company said the voluntary recall relates to a speaker configuration issue that may result in distorted, intermittent or inaudible alarm sound levels in its Airvo 2 and myAirvo 2 devices, it told investors on Thursday.
It said the recall was not anticipated when the group updated its financial guidance last week. The costs will now be provisioned in its accounts for the year ended 31 March.
The Auckland-based company last week said it expects full-year operating revenue around NZD1.73 billion and underlying profit after tax in the range of NZD260 million to NZD265 million.
The source: ASX announcement
