PMP loses $24m on back of asset writedowns
THE printing and distribution business PMP has plunged to a $24 million loss for the six months to December 31 after the bottom line was hit by $41 million worth of restructuring costs and asset write-downs.
The company, however, has maintained its earnings guidance for the full year.
The chief executive, Peter George, said all of PMP's businesses in Australia and New Zealand reported lower printing volumes and revenue.
The company said earnings before interest and tax for the December half were down 37 per cent to $14.6 million on lower sales in a competitive market.
"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 transformation plan to cut costs and pay down debt amid declining demand for the print products it provides customers such as Woolworths, Foxtel, and Telstra's directory business, Sensis.
PMP 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 main print customers for the next few years.
Its shares rose 1.5¢ to 21.5¢.