Packaging group PaperlinX has announced an even deeper half year loss stemming from problems in Europe, a week after its chief executive was sacked and replaced.
The company behind industrial packaging, fine paper and signs blamed surprisingly poor market demand and unsustainably low prices in the UK and midwestern Europe for a loss of $90.8 million in the six months to December 31.
This was more than triple its loss of $28.4 million suffered a year earlier.
The bad news comes nine days after the company sacked and replaced chief executive Andrew Price after just over a year in the top job.
Chairman Robert Kaye said its poor performance in Europe had overshadowed its healthier operations in Australia, New Zealand and Canada.
"This is a disappointing result out of Europe," he said.
"The interim results are negatively skewed by the underperformance of the European business which experienced a very tough six months and in particular the second quarter."
PaperlinX also incurred $63 million in goodwill impairment charges in Canada, Asia and Europe, which hit underlying earnings.
It began a strategic review in December, which Mr Kaye said was exploring ways to downsize.
The Spicers Canada business has been sold.
"Once the review is finalised and the recommendations are implemented, it is likely that PaperlinX will have a reduced portfolio of assets with greater prospects of financial stability," Mr Kaye said.
The company's shares closed flat at 1.8 cents.
LOSSES MORE THAN A PAPER CUT FOR PAPERLINX
* Net loss of $90.8m, down from a $28.4m loss in 2013/14
* Revenue $1.3b, down 12 pct from $1.5b
* No interim dividend, unchanged
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