PaperlinX Limited released financials for its full year, ended June 2013, which included positive numbers from its Canadian operation despite a statutory loss (after tax) of $90.2 million for the entire company. PaperlinX had a loss of $266 million in its 2012 fiscal year.
Spicers Canada, a division of PaperlinX headquartered in Australia, recorded earnings of $13.2 million for the 2013 fiscal year, which improved from $8.3 million in 2012. The Canadian division’s $13.2 million in earnings was based on the generating sales revenue of $401.5 million in 2013.
Canada is recorded as the only individual country to have positive earnings, based on the fact that PaperlinX groups together Australia, New Zealand and Asia, which collectively had a slightly smaller positive number than the Canadian operation at $13.0 million in earnings for 2013.
PaperlinX’ European operation recorded a loss of $34.3 million in earnings for the full year of 2013, which increased from a loss of $23.5 million in the year prior. In Europe, sales revenue dipped from $2.3 billion in 2012 to $1.9 billion in 2013.
Revenue for the entire company was down 12 percent at $2.8 billion for 2013 when compared to total revenue of $3.2 billion in 2012.
“Our turnaround strategy is progressing, with significant restructuring initiatives undertaken, particularly in Europe,” stated Dave Allen, Chief Executive Officer. “Our efforts this year are forecast to result in permanent cost savings of $35 to $40 million from FY14. To deliver this, very difficult decisions have been taken, but we are confident that these pave the way to profitability for the Group.”
PaperlinX recorded a lower net debt of $122.7 million in 2013 versus the prior year of $147.8 million, which the company states to reflect proceeds from the sale of businesses in the first half of this year. These sales, according to PaperlinX, were partially offset by cash trading losses, additional restructuring and unfavourable movements on foreign currency.