In a statement to the ASX (Australian Securities Exchange), international paper merchant PaperlinX reported a statutory loss after tax of $(60.9) million for the six months to 31 December 2011. This includes a non cash impairment charge of $39.4m, which has been made against the carrying value of goodwill in the European business – primarily in Benelux.
Dave Allen, Executive Vice President, PaperlinX says, “These results reflect our exposure to the European economic crisis and the figures tabled above are a result of the global decline in paper consumption, compounded by falling prices in Italy, the Benelux countries and Germany.”
PaperlinX has maintained its market share in its core market during the past for the six months to 31 December 2011 and is accelerating growth in new areas – Sign & Display, Digital and Packaging.
“As a Group, we have a clear plan to restore profitability, strengthen the balance sheet and create a sustainable future,” Mr Allen continued. “We have made significant progress in reducing our cost base and we are already seeing benefits starting to flow from this.”
