Richard Allely, CEO of PMP says the fall in volumes was largely attributable to reduced pagination and print frequency from existing customers. However earnings were up due to lower operational and input costs and freight efficiencies. He adds the outlook for the second half is positive and is underpinned by solid contracted volumes.

Allely says, “The print division exceeded our expectations, we have managed to increase our earnings by doing things differently. We are putting less volume through but this is choice more than anything else.

“We have invested a lot of time in improving our printing and freighting efficiency. We are running our presses more effectively with better production scheduling and planning, as well as bringing in the right people to run it.”

PMP’s overall operating revenue dropped 3.7 per cent to $621.9m as well as a net loss of $14.8m, however the company also reported earnings of $53.9m up 7.3 per cent on the year before and a $17.1m net profit up from $16.2m in 2010.

Graham Reaney, chairman of PMP says, “Notwithstanding a fall in operating revenue, PMP’s first half year result delivered strong EBIT and cash flow. Higher profits came from another strong result at Print Australia and an improved outcome at PMP NZ.

“Cash flow performance was strong, with free cash flow of $25.5m. PMP ended December 2010 with net bank debt of $142.6m, down from $168.1m in June 2010.”

Meanwhile, Allely remains optimistic about continued improvement in operating earnings in for the second half of 2011. He says, “I expect full year EBIT before significant items to be in the range of $56m to $60m. I also expect our net debt at year end to be circa $160m.

“In addition, we plan to continue to pursue market share gains in the Australian letterbox distribution business and earnings momentum in Australian Print.”

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