Quote Originally Posted by peat View Post
Shows how important FX strategy is for NZ business huh!


is it incorrect for me to say that nearly all the profit was in fact FX dealings..
Yes and no. The FX profit is banked and drawn down as money is repatriated back to NZ and not called profit. If the Kiwi drops back to 50us and they cash out at say 60us and they get new hedging at 50us then the difference would be included as an extraordinary item. So they are basically saying they can sell $600mill before they have to use market exchange rates. That will take them through to next late next year hopefully giving them enough time to either increase prices or get some more hedging if the kiwi drops. However will be tight if there is no drop in the Kiwi by next year. But having said that they now have 40% of sales in the states and 30% in Europe and 30% in Asia so should be ok. The currency risk is well spread now. The Euro rate is still below our long run average and so they should be ok there.