March 5, 2008 / 10:48 PM / 10 years ago

UPDATE 1-Cinram pulled into red on impairment charges

(In U.S. dollars unless noted)

TORONTO, March 5 (Reuters) - Cinram International Income Fund CRW_u.TO, the world’s largest provider of prerecorded media products such as CDs and DVDs, swung to a fourth-quarter loss on Wednesday as it booked $386.3 million in goodwill and asset impairment charges.

Cinram, which in November said it would suspend payouts to investors amid weaker prices and slumping demand for its products, said it lost $316.6 million, or $5.53 a unit, in the three months ended Dec. 31. That was down from a profit of $95.7 million, or $1.64 a unit, in the same period a year earlier.

Revenue rose to $696.2 million from $616.7 million the year before, partly due to growth in its biggest segment, the copying and distribution of DVDs and high-definition discs.

The company said it took a goodwill impairment charge of $313.7 million, a $55.8 million charge related to property, plant and equipment, and a $16.8 million charge related to intangible assets.

Cinram released its results after markets closed. Its units rose 3 Canadian cents to close at C$5.88 on the Toronto Stock Exchange.

$1=$0.98 Canadian Reporting by Wojtek Dabrowski; Editing by Peter Galloway

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