VAUGHN, ON—Spicers Canada announced a restructuring resulting in 50 job losses. The layoffs occurred at multiple levels within the company, said Cory Turner, Spicers Canada president.

"While pleased with our progress improving our financial results, there remains a need to proactively challenge our internal cost structure," Turner said, "so that we continue to effectively deliver reliable solutions that contribute positively to our customers' success."

According to a financial report for the six-month period ending December 31, Spicers Canada earned $5.2 million before interest and taxes (EBIT), up from $3.6 million EBIT in the previous corresponding period. (All figures are in Australian dollars)

"The improvement in earnings would not be possible without an internal commitment to simplicity, and the pursuit of valued solutions that improve profitability for our customers, suppliers, and our company," Turner said.

According to a presentation last week by Dave Allen, chief executive officer of Spicers' parent company Paperlinx, the improved earnings in Canada, and also in the Australia, New Zealand and Asia (ANZA) region, helped offset Paperlinx's increased losses in Europe.

While Canada's performance was strong, the company as a whole posted a sales decline of 17% to $1.4 billion, and a loss after tax of $57.3 million versus $60.9 million the prior corresponding period.

Allen's presentation cited the impact of "legacy operation structures…that were not aligned with changing market conditions" as a factor. "Our key loss-making business in Europe is in the Netherlands and to a lesser extent Germany, and their performance is being addressed through a restructuring programme in both countries," reads Allen's presentation notes, available for download on Paperlinx.com.

Paperlinx is a distributor of fine paper, graphic arts, sign and display and industrial packaging equipment and consumables. Spicers Canada represents the entirety of its North American business, as the company sold its U.S. operations last year.