Fisher and Paykel Appliances has posted a full-year after-tax loss of $83.3 million, having been hit by asset impairments of more than $100 million.
The whiteware manufacturer, which has shifted its operations offshore over the past two years, did not give any guidance for 2011 except to say economic conditions were "expected to remain fragile" and competition "intense".
Managing director Stuart Broadhurst said "revenue and cost-saving benefits will be partially offset by competitor activity, rising commodity prices, increased lease costs and higher sea-freight charges", he cautioned.
This year's $83.3 million loss compared with a $95.3 million loss last year.
Mr Broadhurst said over the "medium term", Appliances was well-positioned to benefit from improving economic conditions, and it would take growth opportunities and was developing new products.
Total revenue for the year to March was down 17% from $1.21 billion to $1.01 billion.
The asset impairments costs for the year, totalling $102.3 million before tax, included $7.5 million at its new Mexican plant; a $3.3 million non-cash charge following the non-sale of its East Tamaki land; $14.7 million on the value of its Elba brand; $10 million in obsolete stock; and $11.8 million in Barter cards.
Its US DCS cooker brand carried $22 million in impairments and a further $32.3 million in plant and equipment impairments.
It is a year since Chinese appliance manufacturing giant Haier took a 20% stake in then debt-laden Appliances for more than $80 million. Debt, which stood at $502 million in May 2009, had been reduced to $173.1 million during the full-year to March.
Its shares were trading up 3.6% at 57c after the announcement yesterday.
Forsyth Barr broker Tony Conroy said the overall result was "disappointing" and full-year 2011 forecasts were more likely to be downgraded than upgraded.
"Another $7.5 million has been written off the Mexican plant, highlighting that the US is going to continue to be difficult ... the Mexican write-down is of the most concern," he said.
Craigs Investment Partners broker Peter McIntyre said of concern was the quality of Appliances' operating earnings, which were "still poor".
The outlook statement pointed to "another challenging environment" during 2011, but this time it would have the support of the relocation synergies.
