McPherson's print earnings drop

Low margins lead to drop in earnings for McPherson’s printing business.

In its first-half results, McPherson’s made $13.5 million for the six months to 31 December 2008, a 13.5 per cent drop on the previous figures which were $15.6 million.

Earnings for printing were also down, at $1.7 million, a drop from $1.9 million in the previous corresponding period. Changes in the revenue mix and cost increases resulting from the lower Australian dollar were attributed to this drop.

A statement from the company said that: “Management is focused on cost containment and efficiency gains through technology enhancements. Recent investment in new short-run equipment is expected to provide operational efficiencies and new business opportunities.”

McPherson’s managing director, David Allman said that second-half trading had been “reasonably solid” and he expects the company’s earnings per share for the full-year to be between 25-30 cents, compared with 25 cents predicted at the annual general meeting last November.

“Looking forward, the strength of our brands and our high proportion of non-discretionary products are expected to provide resilience in the current difficult trading environment,” he said.