PMP has $24m half-year loss
PRINTING and distribution business PMP plunged to a $24 million loss for the six months to December 31 after the bottom line was hit by $41 million of restructuring costs and asset write-downs, but the company maintained its earnings guidance for the full year.
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¢.