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Fisher and Paykel Appliances says it expects an improved second half will see it post full year earnings of $33 million, including relocation costs.

The company's shares plunged 12 per cent on Monday, after the announcement, and MD John Bongard says costs associated with relocating to Thailand, Mexico and Italy are weighted to the first half result.

However he also said that "lower manufacturing costs are starting to flow through from the Thailand factory, and the second half of the year will see full gains from that plant and preliminary gains from the Mexican plant being realized".

Bongard noted that "uncertainty in the future of raw material pricing, interest rates and exchange rates are among other factors affecting the company's bottom line", according to the report.