At PMP’s recent Annual General Meeting, the company announced its earnings for the 2009 financial year would be lower than the 2008 result however the company was unable to predict the extent of the loss due to the economic downturn.
The company says the poor performance of its Clayton site and the difficult market conditions in New Zealand have led to an EBIT reduction of approximately $6m for the first four months of this year compared with last year.
These production problems have now been overcome and the two main plants at Clayton and Moorebank have strong volumes booked through to December, PMP reports.
The company also reported that it is already implementing a comprehensive print cost reduction and optimisation strategy aimed at offsetting anticipated lower print volumes. This is being implemented with the assistance of external consultants, and considerable opportunities have been identified.
Meanwhile, Brian Evans, CEO of PMP says the company reported a good year in 2007-08, marked by a solid operating performance and continued strengthening of its balance sheet.
Sales revenue was up 4.6 per cent to $1.347bn. EBIT before significant items was $85.1m, down 6.8 per cent on the previous year but in line with market guidance provided in May.
Evans says, “The softer EBIT result is attributed to reduced average selling prices in the Print business coupled with the weakening of the New Zealand economy and also some additional costs associated with the integration of the Times Printing business.”
Net profit before significant items was $52.3m, up 7.7 per cent on the previous year. Significant items provided a net benefit to PMP of $26.6m, leading to a net profit result of $78.9m, well up on last year.
Evans concludes, “I am confident that with PMP’s strong management and leading businesses, we are well placed to see through the current challenging market conditions in the short term, and continue to grow the business over the longer term.”
