Meanwhile the paper giant reported sales revenue at of $3.8bn, which is in line with the previous year, despite volumes being down seven per cent to 1.97m tonnes.

Earlier this month, Japanese paper manufacturer Nippon Paper Group, agreed to buy PaperlinX’s manufacturing operations, Australian Paper for up to $700m.

According to PaperlinX, Australian Paper had assets valued at $1.15bn on June 30 and the company wrote down $567.5m in the half to represent the sale.

The company attributed its narrow profit to a weak global demand, which has seen lower volumes and inventory reductions throughout the supply chain.

Tom Park, CEO of PaperlinX says it has been the most challenging period in the history of the company and the results reflect that.

He says, “It will not be an easy business environment in the year ahead for either PaperlinX or the world in general, but as we stay focussed on the areas within our control, complete the sale of Australian Paper, and avoid some of the distractions of the past year, we will make positive progress.”

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