The print group posted a $24 million first-half loss for the six months to 31 December 2012, having posted a $4.6 million profit in the first half of 2012.
Underlying profit was $8.1 million, an 8.8% fall. This was dragged into the red by $41.4 million of one-off net costs.
Revenue slumped 11.2% to $512.8 million as print volumes fell 15.1%, letterbox volumes fell 4.6% and volumes at magazine distribution arm Gordon & Gotch fell 11.8%.
There was a hint of optimism in PMP's underlying profit margin, which climbed from 1.5% to 1.6%.
Debt dropped 12.4% to $134.5 million. Debt is expected to fall to about $115 million by the end of the financial year.
The print giant said it would continue to reduce debt and cut costs. The aim is to become a "low-cost heatset producer" that can survive in a consolidated market faced with ongoing margin pressures.
As part of the restructure, the print, distribution and digital businesses have been rolled into a new division called PMP Australia. That is expected to reduce costs and boost efficiency by eliminating duplication and overlap.
[Related: PMP wins Woolworths contract]
PMP is also pressing ahead with the sale and leaseback of its properties. Wacol was sold for $8.3 million in January and a $30.2 million deal has just been agreed for Moorebank. The sales process for Clayton, Bibra Lake and Christchurch is ongoing.
Chief executive Peter George said: "The company's turnaround journey is now well advanced and is delivering to plan.
"The business has been simplified with non-core assets being divested, our transformation program to reduce our cost base is well advanced, and a simplified management structure under new leadership has been put in place.
"As well, PMP Australia has now secured most of its major print customers for the next few years."
George added: "In the second half of the year we expect to see a continuation of difficult market conditions as a result of over-capacity in the industry, especially in heatset printing. PMP will continue to benefit from cost reductions generated by the transformation plan."
[Related: Ups and downs of PMP]
Comment below to have your say on this story.
If you have a news story or tip-off, get in touch at editorial@sprinter.com.au.
Sign up to the Sprinter newsletter