Fisher & Paykel Healthcare lifts guidance, signals $23m in US tariff refunds
It comes after the Supreme Court ruled that the Trump administration's tariffs imposed under the International Emergency Economic Powers Act were illegal.
Fisher & Paykel Healthcare has lifted its guidance, signaling a potential $23 million in US tariff refunds. The company revealed this information in a future earnings update to the NZX. In 2023, the Supreme Court ruled the Trump administration's tariffs under the International Emergency Economic Powers Act (IEEPA) were illegal. Subsequently, the US Court of International Trade ordered US Customs to refund the tariffs.
In response, Donald Trump imposed new tariffs using a different law related to unfair trade practices, which put New Zealand in a 12.5 percent tariff. Fisher & Paykel Healthcare incorporated the $23 million in US IEEPA tariff refunds into its full-year net profit after tax guidance. The company, which designs, manufactures, and exports medical devices from New Zealand and Mexico, with the US as its primary market, now anticipates full-year net profit after tax between $525 million and $565 million, up from the previous range of $500 million to $550 million.
Additionally, the company expects full-year operating revenue to increase slightly, between $2.47 billion and $2.57 billion. However, the guidance is contingent on exchange rates by July 31. The full-year outlook remains optimistic, anticipating better gross margins and assuming current global tariff rates, policies, and applications throughout the year.
Fisher & Paykel Healthcare's managing director and CEO, Lewis Gradon, noted the company's strong start to the first half, particularly in its hospital product group, driven by continuous demand for their latest hardware devices and changes in clinical practice that boost consumable sales.
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