Tax ups Paperlinx profit

24 February 2005 – Melbourne (AUS): Net profit at Paperlinx more than doubled for the second half of 2004 to $A125.8 million ($99 million) from the A$53 million reported in the first half, boosted by a one-off A$73 million tax gain.

Excluding the tax gain, figures were the same, said CEO Tom Park, who said that trading conditions remained difficult.

"The overall rise in the Australian dollar has clearly had an impact on us," he said, "but there is improving global demand reflected in some of those importers needing longer lead times to be able to deliver product into Australia."

On the plus side, he added, Paperlinx has successfully re-launched its Reflex paper, won a major new contract and seen an upsurge in advertising in the US and Europe which has lifted paper sales.