PaperlinX Limited, after arguably its most tumultuous year since being listed on the Australian Stock Exchange in 2000, has reported its year-end results, ended June 30, 2012.
PaperlinX announced a statutory loss of $266.7 million (after tax) for its most recent year, compared to a loss of $108 million for the prior year. The statutory loss of $266.7 million is increased from the $171 million expected loss that was announced on June 26 2012. The company states this is largely because of the board’s decision to write-off all remaining goodwill on its European operations.
PaperlinX’ revenue was $4.11 billion for the year, down from $4.67 billion in the prior year, which the company relates to weaker sales and the negative impact arising from the strength of the Australian dollar. Pointing to a weaker demand in Europe, the company also saw a drop in annual volumes, moving from last year’s 2.63 million tonnes to 2.44 million tonnes in the current year.
For its most-recent year, PaperlinX reported a lower net debt of $148 million versus the prior year’s net debt of $172 million. This follows the recent sale of its operations in the U.S. and Italy, while the sale of PaperlinX operations in South Eastern Europe and South Africa are expected to be complete in the first half of fiscal 2013.
Harry Boon, PaperlinX Chairman, said, “These results reflect a company in transition as we respond to the reality of the continuing structural decline in paper demand, current weak market conditions and the continuing poor outlook in Europe.
“The implementation of the strategic review involved taking substantial measures to reshape the company,” continued Boon. “Cash generated from asset disposals and the close out of the currency option have provided much needed liquidity, reduced debt and funded crucial restructuring. When completed, the expanded and accelerated restructuring program will provide a significantly lower operating cost base.”