ebit

For me I don't mind ppx or pxupa sp falling, as I still waiting to add more. But there is no rush. At the AGM trade conditions won't be talked about and then next financial reporting is not until Feb.

I have examine around 6 paper merchant financials and Paperlinx Europe's EBIT / revenue is the problem, particularly Netherlands and Germany. Toby Marchant was in based in Netherlands and he either:

1 Selling paper far too cheap or
2 had placed future paper buy orders in at a certain fixed price. The buy in variable paper price may have fallen since he possibly placed his order.
If this is the case, I hope the contract has come to an end.

He was the one who had to go.

I feel Harry Boon did everything right with the restructuring but did not have the belief that paper volumes would only fall at 5% pa. He probably felt it would fall quicker and I share the same belief. I base this thought on a quick off the cuff comment HB made during question and answer session around 6 weeks ago.

I don't see a problem with declining volumes but the EBIT needs to be in line with our competitors closer to 3%. It is only Germany and Netherlands that are the problems.

Everything else in the proposed strategies are perfect. Packaging is a growth industry and every paper company is getting involved.