Fisher & Paykel Appliances Holdings Limited
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Fisher & Paykel Appliances Holdings
Limited: SWOT Analysis & Company Profile
Reference code: BRCP175CP10-Q4
Published: Nov 2010
Business Review
John Carpenter House
7 Carmelite Street
London EC4Y 0BS
United Kingdom
Tel: +44 (0) 20 7936 6400
Fax: +44 (0) 20 7336 6813
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Fisher & Paykel Appliances Holdings Limited - SWOT Page 1
Profile
Fisher & Paykel Appliances Holdings Limited
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Fisher & Paykel Appliances Holdings Limited - Company Overview
Fisher & Paykel Appliances Holdings Limited (Fisher & Paykel) is engaged in manufacturing and marketing household
appliances. It also provides financial services. The company, along with its subsidiaries, produces, markets and
distributes various household appliances such as dish washer, dryers, cooking range, laundry equipment, and
refrigeration appliances. All these products are sold under different brands such as Fisher & Paykel, DCS, AquaSmart,
Elba, and IZONA. The company operates through two business segments namely, Appliances business, and Finance
business. The company has global presence across North America and in major countries of Europe and Asia. It also has
wide presence in Pacific Island countries. Fisher & Paykel is headquartered in Auckland, New Zealand.
Financial Performance
The company reported revenue of NZD 1164.06 million during the fiscal year ended March 2010. Its revenue declined at a
compounded annual rate of 9.02% during the period 2008-2010 with a year on year decrease of 15.05% over fiscal year
2009. During the fiscal year 2010, its operating margin was -6.43% as against an operating margin of -4.7% during the
fiscal year 2009. Moreover, during the fiscal year 2010, the company’s net profit margin was -7.16% as against a net profit
margin of -6.95% during the fiscal year 2009.
Fisher & Paykel Appliances Holdings Limited - Key Facts
Fisher & Paykel Appliances Holdings Limited, Key Facts
78 Springs Road, Manukau, ,
Ticker Symbol, Stock FPA (New Zealand Exchange
Corporate Address:
2013, New Zealand Exchange Limited)
Telephone + 64 9 2730592 No. of Employees 3,300
Fax + 64 9 2730609 Financial Year End March
URL www.fisherpaykel.com Revenue (in NZD Million) 1,164.06
Industry Consumer Packaged Goods Revenue (in USD Million) 857.86
Australia, Bangladesh, Brunei Darussalam, China, Fiji, Hong Kong Special Administrative Region of
China, Japan, Malaysia, New Caledonia, New Zealand, Singapore, Thailand, Austria, Belgium,
Locations
Cyprus, Denmark, Finland, France, Germany, Greece, Ireland, Italy, United Kingdom, Israel,
Lebanon, Mauritius, Canada, United States, Mexico
Source: Annual Report, Company Website, Primary and Secondary Research
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Fisher & Paykel Appliances Holdings Limited - SWOT Profile Page 2
Fisher & Paykel Appliances Holdings Limited
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Fisher & Paykel Appliances Holdings Limited - Business Description
Fisher & Paykel Appliances Holdings Limited (Fisher & Paykel), through its group companies, is engaged in the
production, distribution and marketing of home appliances. The company has three wholly owned subsidiaries; Production
Machinery Limited, which builds production equipment, Dynamic Cooking Systems Inc. in the US, which manufactures
indoor and outdoor cooking products and Fisher & Paykel Italy, which manufactures European cooking products. Fisher &
Paykel employed 3,300 people as of 31 March, 2010.
The company operates through two business segments namely, Appliances business, and Finance business. The
company’s Appliances business has a global presence, whereas its Finance business activities are confined only to New
Zealand.
The company, through its Appliance business segment, is engaged in producing, distributing and marketing electronic
home appliances. The product portfolio of this segment comprises cooking products such as ovens, rangehoods, cook
tops, splash backs, and freestanding cookers; refrigerators; dishwashers and dish drawers; and laundry products
comprising washing machines and dryers. The company sells these products under Smart Drive, DishDrawer, Active
Smart, SmartLoad, Aerotech, and Fisher & Paykel brands. Fisher & Paykel offers these products across New Zealand,
Australia, US, Europe and a few other geographical markets. During the fiscal year ended March 2010, this segment
generated 38.4% of revenues from Australia, followed by 26.9% from North America, 18.0% from New Zealand, 10.1%
from Europe, and 6.6% from rest of the world. The company's wholly owned subsidiaries comprising AF Investments
Limited, Fisher & Paykel Australia Holdings Limited, Fisher & Paykel Appliances (USA) Holdings Inc, Fisher & Paykel
Appliances Italy Holdings S.r.l., and Fisher & Paykel (Singapore) Pte Limited manage the Appliances business on a global
scale. During the fiscal year 2010, the segment contributed 86.8% towards the total revenues of the company, generating
NZD 1,010.66 million, a decrease of 16.7% over the previous year.
Further, under the Finance business segment, the company is engaged in offering financial services and consumer
finance services. The company, along with its wholly owned subsidiary Fisher & Paykel Finance Holdings Limited and
seven other indirectly held subsidiaries, manages the entire business operations related to financial services. Fisher &
Paykel offers its financial services only in New Zealand. The company, under its financial service portfolio, offers
equipment finance, consumer finance and credit, farmers finance cards, credit cards, and retail finance, among others.
During the fiscal year 2010, the segment contributed 11.7% towards the total revenues of the company, generating NZD
136.06 million, a decrease of 0.6% over the previous year.
Recently, the company unveiled a revolutionary refrigeration technology, developed under a joint development agreement
with Embraco, owned by Whirlpool Corporation. The new technology is more energy efficient than conventional
compressors by up to 30% and has additional benefits of increasing storage capacity and refrigerator design options,
while enhancing the temperature control to improve food quality and safety. Further, the company entered into an
agreement with Sears Holdings to sell DishDrawers in 500 Sears Full Line stores. In addition the company also entered
into an agreement with Lowe’s Group to sell washing machines and clothes dryers to sell in700 Lowe’s outlets in. Lowe’s
Group also sells DishDrawers in over 500 outlets.
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Fisher & Paykel Appliances Holdings Limited - SWOT Profile Page 3
Fisher & Paykel Appliances Holdings Limited
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Fisher & Paykel Appliances Holdings Limited - Major Products and Services
Fisher & Paykel Appliances Holdings Limited is engaged in the production, distribution and marketing of home appliances.
The key products and services offered by the company include the following :
Fisher & Paykel Appliances Holdings Limited, Major Products and Services
Products:
Dish Drawer
Dryers
Cooking Range
Laundry Appliances
Refrigeration Appliances
Services:
Consumer Finance
Insurance
Equipment Finance
Retail Finance
Farmers Finance cards
Q cards
Brands:
Fisher & Paykel
DCS
AquaSmart
Elba
IZONA
Source: Annual Report, Company Website, Primary and Secondary Research
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Fisher & Paykel Appliances Holdings Limited - SWOT Profile Page 4
Fisher & Paykel Appliances Holdings Limited
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Fisher & Paykel Appliances Holdings Limited - History
Fisher & Paykel Appliances Holdings Limited, History
Year Event type Description
2009 Corporate Changes/Expansions The company expanded the US distribution into Sears Hometown stores.
2009 Corporate Changes/Expansions The company commenced distribution of Haier products in New Zealand.
The company acquired all the shares in Maytag Mexico Appliance Products, S.de R.L.
2008 Acquisitions/Mergers/Takeovers de C.V. and additional refrigeration manufacturing assets from subsidiaries of Whirlpool