XML transform output to text removes line feeds?

XML transform output to text removes line feeds?

I am trying to transform some XML to give a basic text output, however I am finding that line breaks present in formatted text blocks in the XML, are being removed when the xml is transformed to text.

E.g. the XML might contain:

formattedtext
This is the first line
This is the second line

This is the third line
This is the fourth line
/formattedtext

but when transformed, the text output will contain:

This is the first lineThis is the second lineThis is the third lineThis is the fourth line.

Does anyone have any ideas?
Kermit:
I am able to format the text by using the transform file to add line feeds to the text output, but I need to preserve the line feeds in the XML source when converting to text output. Is there no way to do this at all?