Feb 26, 2007. /Lesprom Network/. PaperlinX announced on February 22 profit after tax for the six months ended 31 December 2006 of $32.7 million on revenue of $3.95 billion. Results included a net $(10) million after tax of one-off costs associated with various strategic initiatives. Reported EBIT was $87.1 million, up 10% on the prior corresponding period. Underlying EBIT, adjusted for one-off items, of $96.0 million (up 24% on the prior corresponding period) reflects benefits that have begun to accrue from previously announced strategic initiatives, while strong cost and efficiency performance has helped to mitigate higher input costs. The interim dividend will be $0.05 per share, unfranked. Commenting on the announcement, PaperlinX CEO Tom Park said, “Over the past two years we have developed a range of strategic initiatives to improve our returns and to mitigate, as best we can, the effects of the difficult market conditions we have faced for some time now. These initiatives are now delivering and directly contributing to the positive direction in underlying operating earnings. Our returns are still well below target levels, but the lift in underlying return on average funds employed for both our merchanting and manufacturing businesses is encouraging.” “Recently we announced that we are negotiating a potential acquisition in Italy and divestment of our business in France. Today we are announcing that we are proposing to issue between $250 and $300 million of hybrid equity in the form of Step-up Preference Securities (SPS). Both of these actions are consistent with our Core Operating Principles, with the proposed European changes strengthening our existing business platform by increasing focus where we have greater competitive advantage, while the SPS issue will reduce debt and enhance PaperlinX’s financial platform to take advantage of future opportunities.” PaperlinX is the world’s leading fine paper merchant, with businesses in Australia, New Zealand, Asia, North America, South Africa and Europe. Through its Australian Paper division, it is also the only Australasian producer of high quality communication papers, and a major Australian producer of high performance packaging and industrial papers.