Pmp Lifts Earnings Forecast
The Age
Tuesday April 8, 2003
Sydney
Commercial printer PMP has given itself 18 months to deliver stronger earnings from its core printing business and to rebuild its credibility with investors.
It went some way down that path yesterday when its new chief executive officer, former All Blacks captain David Kirk, delivered some long-awaited good news on earnings, job cuts and debt, after releasing details of a strategic review two months ahead of schedule.
The company, which had its share price slashed by one-third last November when it cut its interim profit forecast, has now lifted its expectations for earnings before interest and tax (EBIT) for the full year to June 30 to as much as $51 million.
Shares in the company yesterday surged 7, or 15 per cent, to 53.
``The company has gone through a period in the last year of rationalising what it owned and paying down debt, and has emerged as a focused heat set web printer and media services business," Mr Kirk said.
``I have to be honest with you. We are in a 12 to 18-month focus to deliver much stronger earnings out of our core business."
The strategic review, which involved mostly job cuts and with more to come, is expected to add $30 million of earnings to PMP's underlying business in fiscal 2004.
The company is now expecting EBIT for the year to June 2003 of around $50 million to $51 million, before any significant items. Market expectations range between $48 million and $52 million.
In the 2004 fiscal year, the company expects redundancy payments to contribute heavily to a one-off cost of $12 million.
PMP posted a bottom-line profit of $27.13 million for 2002.
© 2003 The Age
Share This