Hayleys MGT Knitting Mills, the Hayleys Group’s cotton and synthetic fabric manufacturing business, has reported a net profit of US$ 1.96 million for the nine months ending 31st December 2009, on a turnover of US$ 37 million.

According to figures released to the Colombo Stock Exchange this week, both turnover and profit declined in the third quarter of the year, when compared to the corresponding period of last year. According to a company statement, Hayleys MGT Jt. Managing Director Bandula Weerasinghe said prices had fallen in the third quarter and volumes had also declined as the company had lost some orders to lower-priced overseas competitors. However, the company has regained the lost orders in the current quarter and expects a better year-end result, he said.

The company achieved a 23 % drop in its cost of sales through a combination of lower energy costs and lean production practices, Mr. Weerasinghe said. However, the drop in prices and volumes in the third quarter had resulted in a decline of 7 % in profits to shareholders.

The outlook for the final quarter and the year as a whole would be enhanced by the savings generated by the company’s new bio mass steam generator and earnings from the recently acquired state-of-the-art rotary and digital printing facility, Mr. Weerasinghe added.