Paperlinx has reduced its losses and cut debt but warned that 70% of the group is "underperforming".
The paper merchant reported a $90.2 million net loss for the 12 months to 30 June 2013 compared to a $266.7 million loss the year before.
Paperlinx posted an underlying loss of $39 million once $51.2 million of one-off costs were discounted; the underlying result in 2011-12 was a $54.4 million loss.
Asset sales helped slash net debt by 17% year-on-year to $122.7 million.
Revenue from continuing operations fell 14.3% to $2.8 billion due to "weaker trading conditions".
Earnings from continuing operations improved from a $20.8 million loss to a $19.6 million loss.
The Australia, New Zealand and Asia region had a 19.3% rise in earnings to $10.9 million while Canada saw earnings jump 59% to $13.2 million.
Paperlinx said these two regions, which each contributed 15% of group revenue, had delivered "strong performances" in 2012-13.
[Related: Andrew Price joins Paperlinx]
However Europe, which generated 70% of revenue, continued to drag down the group. Europe posted an earnings loss of $34.3 million – 45.3% worse than the year before.
The group said restructuring done in 2012-13 would produce permanent cost savings of $35-40 million from this financial year. The restructuring included an 11.8% fall in fulltime-equivalent staff to 4,041. Further restructuring will be done to "resize the cost base of the group and to address underperforming businesses in Europe".
Executive director Andrew Price told ProPrint that the results showed the board was "delivering on our turnaround strategy".
"Australia and New Zealand was one of our strongest performing regions… Despite a tough trading environment, strong expense and margin control saw the region continue to perform as it continues to grow the diversified business mainly through sign and display initiatives."
Price said the new leadership team, which took charge a year ago, had introduced a "significant culture change" by giving the regions more hands-on control. They have also better exploited economies of scale and increased the push into higher-margin sectors, he added.
Price told ProPrint that Paperlinx would look significantly different in five years' time, with "a more balanced mix of commercial print, sign and display and packaging sectors".
"There will also be exciting new products that will no doubt form a part of our mix as the technology continues to develop, including initiatives like our car wrap product and 3D printing."
Meanwhile, Paperlinx announced that it had entered preliminary discussions about a scrip-based merger with the Paperlinx SPS Trust, the vehicle that issued the hybrid securities.
Chairman Robert Kaye said: "The board believes that the simplification of the capital structure is fundamental to unlocking value for both Paperlinx ordinary shareholders and hybrid security holders."
[Related: Ups and downs of Paperlinx]
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