Fisher & Paykel shares slide on costs warning
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More news: Fisher & Paykel shares slumped on the ASX after the health equipment provider warned of increased costs under the new tariffs imposed by the US on Canada, Mexico and China.
Fisher & Paykel shares were down 5.4% to $32.50 by 11am AEDT, making it the second worst performing ASX 200 stock.
Fisher & Paykel warns of higher costs under new US tariffs
The news: New Zealand health equipment provider Fisher & Paykel Healthcare has warned that its costs "will likely increase" due to the introduction of new tariffs on Canada, Mexico and China by US President Donald Trump.
The numbers: Fisher & Paykel currently manufactures 45% of its volumes in Mexico and 55% in New Zealand, while 43% of its revenue for the first half of the 2025 financial year came from the US. Around 60% of its US volumes are supplied from the company's Mexico manufacturing facilities.
The new US tariffs, effective Tuesday, will impose 25% duties on imports from Canada and Mexico and a 10% levy on Chinese products.
The context: Fisher & Paykel said that it does not expect a material impact from the announced tariffs on its net profit after tax for the 2025 financial year. However, the company's costs will "likely increase" in the following year due to the tariffs.
Fisher & Paykel said it continues to expect to reach its gross margin target of 65%, though the US tariffs may have added "two to three years" to that expectation.
The company is "currently working through the complexities associated with the imposition of the tariffs" and will provide an update on its FY26 outlook, as well as an updated timeframe for its gross margin target, at its full-year results in May.
What they said: "The company takes a long-term view and will be working with global suppliers and US customers to provide solutions to best mitigate the impact of the tariffs on all parties," said managing director and CEO Lewis Gradon.
The source: ASX announcement
