PMP maintains guidance despite H1 loss
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Printing and distribution business PMP will continue to sell off assets in 2013 as it tries to recoup money lost from changes to the media landscape.
The company on Wednesday posted a net loss of $24 million for the six months to December 31, compared to a $4.6 million profit in the previous corresponding period.
PMP said its bottom line was hit by $41.1 million worth of significant items.
They included $11.7 million of redundacy-associated costs and imposts due to the closure of its western Sydney printing plant, which produced White and Yellow Pages phone directories.
Chief executive Peter George said all of PMP's businesses, both in Australia and New Zealand, reported falls in printing volumes and revenue over the period.
"PMP delivered a stronger result in New Zealand.However, this was offset by PMP Australia ... which continued to be adversely impacted by difficult market conditions in heatset and lower volumes in the directories business," Mr George said.
Revenue from Print Australia fell $35.8 million, or 14.9 per cent, after it lost a major contract and suffered declines in publishing, directory and retail volumes.
However, Mr George said, the company's "turnaround journey" was well-advanced as it continued to rollout a transformation plan in 2013.
He said PMP Australia was expected to realise savings of $17 million over the full year, after having cut 180 full-time employees.
"This new simplified structure has not only reduced costs but also increased efficiency by eliminating duplication and overlap," the chief executive said.
PMP expects the sale of two if its properties to be settled by March, with three more sales being pursued in the second half.
"In the second half of the year, we expect to see a continuation of difficult market conditions as a result of over capacity in the industry, especially in heatset printing," Mr George said.
"PMP will continue to benefit from cost reductions generated by the transformation plan."
The company has maintained its full year earnings guidance of between $31 million and $34 million, before significant items.
AT 1150 AEDT, PMP's shares were up one cent, or five per cent, at 21 cents.