Paper manufacturer and distributor PaperlinX Ltd
(ASX:PPX) has posted a loss for the first half of fiscal 2010 but says it is making good progress in reshaping the company to secure its future.
Net loss for the six months to December 31, 2009 came to $175.3 million, however the result was a 69% improvement on the same time a year ago.
Revenue for the period came to $2.874 billion, a drop of 28% from last year, while volumes of 1.5 million tonnes fell 24% mainly due to the company’s exit from its paper manufacturing operations in Australia and the impact of weak markets.
CEO Tom Park says there are early signs of improvement in a number of leading economic indicators.
Mr Park says the UK, which is PaperlinX single largest market, remains weak with difficult weather conditions in January impacting earnings as it moves into the second half of the year.
PaperlinX did not declare an interim dividend. PaperlinX recorded a loss of $798.2 million for the year to June 30, 2009.
