In a trading update, the trans-Tasman printer and publisher said it had been forced to revise down its earnings forecast for the current quarter due to the impact of the natural disasters. APN’s estimated earnings before interest and tax (EBIT) for Q1 2011 are expected to be down $9m year-on-year across the group.

This includes a shortfall of approximately $6m blamed on the QLD floods.

An APN spokesperson told ProPrint that flooding did not directly affect its Queensland print sites, which include its flagship plant in Yandina, as well as sites in Toowoomba and Warwick (pictured). However, he said the volatility of the local market had caused problems.

The downgrade in earnings also includes a $4m hit in New Zealand.

The statement said: “Subsequent to the results announcement it has become clear that the Christchurch earthquake on 22 February 2011 has impacted an already subdued New Zealand economy, particularly rural and regional New Zealand.

“Coupled with a lower exchange rate this has resulted in APN’s New Zealand Q1 EBIT being down $4m year-on-year, including a $1m impact from the weaker exchange rate.”

APN has confirmed that its Christchurch operations were working out of temporary premises following damage to the original site. The printing is being outsourced and the original plant will be closed permanently, said the spokesperson.

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