Fisher & Paykel

Chinese manufacturing giant Haier has confirmed its commitment to strengthening the Fisher and Paykel design centre in Dunedin, the Dunedin City Council says.

Fisher and Paykel is a name deeply entrenched within the history of Dunedin and the surrounding districts. The company, which made appliances on the Taieri, employed thousands of local people over decades of production.

Fisher and Paykel Healthcare is at the start of of a 12-month to 18-month earnings cycle upgrade, partly driven by a strong acceleration in sales of high margin Obstructive Sleep Apnoea masks, Craigs Investment Partners broker Greg Easton says.

Control of one of New Zealand's oldest manufacturers looks set to go offshore, after the board of Fisher and Paykel Appliances recommended a revised $1.28 a share takeover offer from the Chinese appliance making giant, Haier.

Fisher & Paykel Appliances shareholders are facing a dilemma about whether or not to accept the takeover offer by Haier Group.

Chinese group Haier yesterday upped the pressure on Fisher and Paykel Appliances shareholders, saying they should be willing to take a significant risk on FPA's future to reject Haier's takeover offer.

Fisher & Paykel has confirmed 29 workers will be made redundant at its Auckland plant when it moves some manufacturing offshore.

Fisher and Paykel Appliances Holdings Ltd is attributing a plunge in net profit after tax for the six months to September to $980,000 - compared with $11.3 million in the corresponding period last year - to lease and litigation costs.

Fisher & Paykel Appliances' positive full-year result last week has prompted upgrades and a cautiously optimistic outlook by brokerages.

Fisher & Paykel Appliances' full-year result tomorrow is expected to be booked at the lower end of guidance, but with its finance arm underpinning an increased after-tax profit up 35%-40% on the previous year.