Natural disaster knocks APN results

Queensland floods and Christchurch earthquakes make a dint in two of APN News and Media’s most important markets but it is still business as usual for printing.

The impact of the two disasters has meant that group earnings for the first quarter of the year is estimated to be down $9 million compared to 2010. According to an APN spokesman, floods did not affect any of the company’s Queensland print operations. “There was no shut-down time at the printing presses,” he told Print21. “Despite the floods, they didn’t miss a copy of any regional newspapers.”

Earlier this year, APN announced that the Queensland floods would impact on its results for 2010 and 2011. Now, after last month’s earthquake in Christchurch and a lower exchange rate, APN’s NZ earnings are down $4 million year on year, which includes $1 million from weaker exchange rates.

“It is extraordinary to experience two major natural disasters in two distinct geographies in one quarter,” said a statement issued by APN. “Although the Queensland economy is still volatile, it is expected that it will recover and return to its strong growth trajectory. Despite its current weakness, the New Zealand economy is forecast to return to growth in 2012. Additionally, the Reserve Bank of New Zealand has recently reduced interest rates and other moves to stimulate the economy in the short-term are likely.”