Feb 22, 2012. /Lesprom Network/. PaperlinX Limited announced a statutory loss after tax of $60.9 million for the 6 months to 31 December 2011. This includes an impairment charge of $39.4 million and compares to a loss of $10.2 million for the prior corresponding period (pcp). Revenue was $2.18 billion, down from $2.43 billion for pcp due to weaker sales and the stronger Australian dollar which had a $121 million negative translation impact. Gross profit percent at 19.3%, was below 19.8% for pcp. Severe macro economic pressures in Europe led to sudden and severe decline in paper consumption in the first half. European revenue declined by 7% reflecting 8% lower volumes compounded by falling prices most notably in Italy, Benelux and Germany. In North America, revenue reduced by 1% driven by 4% lower volumes which was mostly offset by higher selling prices and strong margin management. ANZA’s revenue reduced by 10%, largely due to a 15% reduction in Australian volumes. North America’s statutory EBIT was positive but 4% below the pcp. ANZA’s statutory EBIT was positive but 41% below pcp due to the underperformance of the Australian business. Europe’s statutory EBIT was negative and below pcp. Commenting on the result, PaperlinX CEO, Toby Marchant said: “These results are very disappointing reflecting our exposure to the European economic crisis. We have made progress in reducing our cost base and will see benefits starting to flow from this in the second half and beyond, and our working capital is at record lows, but this is insufficient to offset volume and price pressure in the half. The Board approval of a further major restructuring program in Continental Europe is therefore vital in allowing us to create a lower and more flexible cost base. To execute this we need additional liquidity which we will address through asset sales and other potential sources.” PaperlinX is one of the world's leading global merchants of paper, communication materials and diversified products and services.