Sep 02, 2009. /Lesprom Network/. PaperlinX posted a net loss of $798.2 million for the year ended June 30, compared with a net profit of $72.2 million in the previous 12 months, as IndustrySearch reported. "The market turned down quite sharply in November, December, as the economic crisis worsened around the world and we saw our volumes down 19% in the second half," chief executive Tom Park said. The 2008 -2009 result was affected by impairment charges, as well as a loss on the sale of PaperlinX's Australian paper operation, and $727.9 million of related restructuring costs. PaperlinX said a breach of banking covenants resulted in significant fees charged by lenders and their advisers, along with increased margins and fees related to the granting of waivers for those breaches. "Total costs in 2009 were $68.9 million, including a $25 million make whole fee incurred on the paydown of the US private placement notes," the company said. Park said the improving consumer and economic sentiment in the company's major markets were yet to translate into in a lift in demand and the focus instead had been on cost-cutting. "While the first half of 2010 will remain tough, coming off a weak second half of 2009, it will see the net benefits from cost reductions already made," Park said. The Melbourne-based company cut 632 staff, raised equity and sold assets to reduce debt in 2009. In local currency terms, second half expenses in Europe were down 12% compared with the previous corresponding half. In North America expenses for the second half were down 21% and down five per cent in Australia, New Zealand and Asia. PaperlinX shares jumped 5.34% or 3.5 cent to close at 69 cents. Revenues fell 5.1% to $7.11 billion from $7.49 billion. Divisional earnings before interest and tax (EBIT) fell 42% to $110.1 million, from $190.4 million. EBIT before significant items fell 90% to $16.4 million from $160.4 million. A final dividend was not declared compared to 3.5 cents in the previous corresponding period.