Paper merchant and packaging supplier PaperlinX says it will no longer achieve an underlying profit this financial year, with trading conditions weaker than expected.
The company made a net loss of $28.4 million in the six months to December 31, and an underlying earnings loss from its continuing operations of $9.6 million.
PaperlinX had previously forecast marginally profitable underlying earnings for the full financial year, but its second half performance is no longer expected to offset the first half loss.
Full year underlying earnings are now expected to be a loss in the range of $5 million to $8 million.
"Market conditions remain weak, particularly in the UK, and recent trading has been below expectations," the company said.
PaperlinX last made an annual profit in the 2007/08 financial year, and has undergone a major restructure to combat a decline in the use of paper and the global economic downturn.
