Control line breaks by xslt

Hi Group!!!
Can we control line breaks by xslt. My conversion processor is Saxon.exe.

OUTPUT
         <box>
            <title>Nets Notes</title>
            <para>
               <xref pointer="nets_S2">NETS <i>
                     <b>S</b>
                  </i> 2</xref>
            </para>
          </box>

Desired OUTPUT
         <box>
            <title>Nets Notes</title>
            <para><xref pointer="nets_S2">NETS <b>S</b> 2</xref></para>
         </box>

XSL
<xsl:output method="xml" indent="yes"/>

thanks
...JSR