PMP has $24m half-year loss
Chief executive Peter George said all of PMP's businesses in Australia and New Zealand reported falls in printing volumes and revenue.
The company said earnings before interest and tax (EBIT) for the December half were down 37 per cent to $14.6 million.
"In the second half of the year, we expect to see a continuation of difficult market conditions as a result of overcapacity in the industry, especially in heatset printing," Mr George said.
The company is implementing a plan to cut costs and pay down debt as demand falls for the print products it provides for customers that include Woolworths, Foxtel and Sensis.
PMP said it still expected to report earnings before interest and tax (and significant items) of between $31 million and $34 million for the full year and said its Australian business had secured most of its big print customers for the next few years.
The $41 million of non-cash write-downs and one-off costs included $11.7 million of redundancy costs and expenses. PMP wrote down the value of goodwill on the Australian business by $20 million.
Mr George said PMP Australia was expected to realise savings of $17 million over the full year, after having cut 180 full-time employees.
PMP shares rose 2¢ to 22¢.
Frequently Asked Questions about this Article…
PMP reported a $24 million loss for the six months to 31 December after its bottom line was hit by $41 million of restructuring costs and non‑cash asset write‑downs. That $41 million included $11.7 million of redundancy costs and a $20 million write‑down of goodwill on the Australian business, alongside falls in printing volumes and revenue.
Earnings before interest and tax (EBIT) for the December half were down 37% to $14.6 million, reflecting weaker print volumes across PMP's Australian and New Zealand operations.
Yes. Despite the half‑year loss, PMP maintained its full‑year earnings guidance, expecting EBIT (and significant items) to be between $31 million and $34 million for the full year.
PMP is implementing a plan to cut costs and pay down debt, which has included reducing headcount by 180 full‑time employees in Australia. The company expects PMP Australia to realise about $17 million of savings over the full year as a result.
PMP's CEO said all Australian and New Zealand businesses reported falls in printing volumes and revenue. The company expects continued difficult market conditions driven by overcapacity in the industry, especially in heatset printing.
The article notes PMP supplies print products to major customers including Woolworths, Foxtel and Sensis. PMP said its Australian business had secured most of its big print customers for the next few years.
The $41 million comprised non‑cash write‑downs and one‑off costs. Specifically mentioned were $11.7 million of redundancy costs and expenses and a $20 million goodwill write‑down on the Australian business; the remainder was other restructuring and asset write‑downs.
Following the result, PMP shares rose by 2 cents to 22 cents, according to the article.
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