PaperlinX issues profit warning

0

PaperlinX has warned that its annual profit is likely to be 20 per cent lower than last year due to weak demand, falling paper prices and a strong Australian dollar.

CEO Tom Park said: "Having just completed our March results and revised forecast, it has become apparent that the assumptions we used in our February guidance are not likely to hold in the fourth quarter."

The company now anticipates full-year earnings of A$87 million ($67.6 million), down from A$108.5 million registered last year.

The profit warning caused the company’s share price to crash 28 per cent on the Australian Stock Exchange the following day to a 52-week low of A$2.75.