PaperlinX has published its 2009 results (financial year ended June 30) which includes a AUD$798.2 million loss (about CAD$742 million). The company had a profit of AUD$72.2 million in 2008.
Commenting on the result, PaperlinX CEO Tom Park said, “This has been an extremely difficult year, with paper demand in all markets severely depressed by the global recession.”
The report states that in the second half of its financial year, global paper demand shrunk upwards of 20 percent. Through the sale of Australian Paper and European properties, the company managed to reduce its debt load from over AUD$1-billion at the end of 2008 to $217 million.
The company net earnings from paper merchanting, before interest and taxes, was $82.3 million, down 56 percent from the prior year. Its North American and European trading fared even worse, falling 76 percent and 69 percent respectively. In Australia, New Zealand and Asia, the company posted gains of 23 percent.
As at 30 June 2009, PaperlinX had 7,199 employees, down 23.1 percent from 2008.