Feb 25, 2011. /Lesprom Network/. PaperlinX Limited announced a substantially reduced statutory loss after tax of $10.2 million for the 6 months to 31 December 2010 compared to a loss of $175.3 million for the prior corresponding period. PaperlinX reported an underlying profit after tax of $8.5 million, compared to a loss of $11.2 million for the prior corresponding period. The difference between the statutory loss and underlying profit results from a non cash valuation loss of $16.8 million for a currency option purchased in December 2009 and a net loss of $1.9 million related to the discontinued manufacturing operations. Revenue was $2.44 billion, down from $2.74 billion for prior corresponding period on lower volumes of 1.36 million tonnes down from 1.5 million tonnes for prior corresponding period reflecting continued weak markets. Commenting on the result PaperlinX CEO, Toby Marchant said, “While it is clear market conditions remain weak, it is pleasing to see early evidence of operational and cost improvements across the business translating into improved earnings and an underlying profit. The accounting treatment of the option is frustrating, however we should not forget that its cash cost is fixed and the arrangements associated with it generated sufficient funds to enable the company to close its loss making Tasmanian operations. We will continue to improve and stream line our operations to generate acceptable returns to our investors and make our businesses more relevant to the markets we serve.” “With volumes seeming to have flattened out, albeit at reduced levels, and ongoing pressure on pricing we will continue to focus on those matters which are within our control. Accordingly we will continue to make improvements in our working capital and cost base. In addition, we will optimise our core product range and service delivery whilst accelerating investment into higher margin diversified areas. Given our lower cost base, a more efficient business structure and a focus on diversification we remain well leveraged for any cyclical recovery or upturn in economic conditions.” PaperlinX is one of the world's leading global merchants of paper and communication materials.