Paper manufacturer PaperlinX Ltd
(ASX:PPX) has posted a big $798.2 million loss for the year and will not pay a final dividend as a result of unprecedented deterioration in global paper demand.
The loss compares to a profit of $72.2 million in fiscal 2008.
The result was impacted by $727.9 million in significant items, including impairment charges and a loss on the sale of its Australian paper business.
CEO Tom Park says this has been an extremely difficult year, with paper demand in all markets severely depressed by the global recession.
An unprecedented deterioration in global paper demand reduced volumes in the company’s key markets by 15-20 per cent in the second half.
Mr Park says while the first half of 2010 will remain tough coming off a weak second half of 2009, it will see the net benefits from cost reductions already made. The improving consumer and economic sentiment seen in the company’s major markets has yet to be reflected in a lift in demand in these markets.
Looking back over the past five years, PaperlinX has posted inconsistent net profits.
