Fisher and Paykel Appliances is forecast to book a 50% decline in after-tax profit on Thursday, in line with management expectations, when delivering its first-half 2009 result.
ABN Amro Craigs research is picking $9.5 million after-tax profit, in the upper range of Appliances' earlier forecast expectations of a $7 million to $10 million profit.
Key Appliance competitors Whirlpool and Electrolux have reported sharp declines in third-quarter sales, with shipments to the US 11% down and 4% lower in Europe.
However, Chinese company Qingdao Haier reported strong 7.3% growth in volume, from a 23.2% increase in Chinese retail sales during the same period.
ABN broker Peter McIntyre said the worldwide appliance sector was at present in a "perfect storm", with US, European, Australia and NZ sales below those for the same period last year.
Whirlpool's result best reflected the sector's "poor state", booking a 32% decline in third-quarter operating profit and issuing a second profit warning saying its full-year earnings could be down almost 30% on the corresponding time last year.
Mr McIntyre expected Appliances' result to include $25 million in abnormal costs, being a quarter of the estimated $100 million in relocation costs it is likely to spread over its results over four years, for moving manufacturing to Thailand, Mexico and Italy during the past year.
The move was in the face of skyrocketing global metal prices and a high New Zealand dollar, and cost more than 1000 jobs in New Zealand, Australia and the US, including 430 at Mosgiel.
Appliances has sold its 4.3ha East Tamaki plant for an undisclosed sum, estimated to be 20%-30% below the $12 million-$15 million list price, while its 16.5ha site at Mosgiel, which has a list price of $30 million, has a conditional sale agreement with Fonterra in place.
It was understood its Brisbane site was also attracting interest.
Sales of the sites have previously been estimated by Appliances to contribute about $60 million to $70 million, underpinning the relocation costs.
Mr McIntyre said the Tamaki site book gain of $6.3 million on the October sale was not expected to be included until Appliances' second-half report.
He noted that if the New Zealand dollar continued to fall in line with predictions of trading around US50c by the first quarter of next year, Appliances could be "quite an attractive takeover target", with buyers likely to value the company shares at about $2.60-$2.70 as a target.
ABN retains a "buy" recommendation on Appliance stock, with a 12-month target price of $2 on the stock, which is trading at about $1.53.
Mr McIntyre's financial disclosure document is available on request.
