Office products supplier Corporate Express Australia Ltd
(ASX:CXP) has reported an 8.8 per cent fall in first half net profit and says it expects the year to remain challenging.
Net profit after tax for the six months to July 31 came to $25.5 million, down from $27.94 million the year before. Revenue fell six per cent to $599.2 million.
Corporate Express says it expects conditions to remain challenging for at least the remainder of the year and expects the market for office products to remain highly competitive in the second half.
The company says it is on track to achieve earnings before interest and tax at the lower end of analysts forecasts of between $90.9 million to $100.5 million for the fiscal year ending January 2010.
The company says the impact of refinancing debt early to provide funding certainty means that interest expenses will increase by around $2.5 million this financial year.
Corporate Express declared an interim dividend of 10 cents a share.
Corporate Express Australia’s 2009 net profit was $63.09 million.
