7th February 1999
Exxon - Mobil US$ 86bn.
Travelers - Citicorp US$ 73bn.
SBC-Ameritech US$ 72bn.
Bell Atlantic-GTE US$ 71bn.
AT&T-TCI' US$ 70bn.
NationsBank-BankAmerica US$ 62bn.
Vodafone - AirTouch US$ 56bn.
British Petroleum - Amoco- US$ 55bn.
Daimler Benz -Chrysler US$ 40bn.
Norwest - Wells Fargo US$ 34bn.
The single most compelling reason for 1998's whopping US$400 billion mergers seems to have been two simple words ..."junk bonds." The merge or takeover craze in recent times has been fuelled by once sound businesses accumulating dangerous levels of debt. One of the differences between these deals and previous business practices has been the financial mechanisms used to implement them. Much of this change has come about with the advent of junk bonds. This being the business concern of the economy a more personal concern is job security. The human toll has been enormous, estimates of job cuts run into hundreds of thousands. Debt from corporate reorganization has also led to reduction of wages and benefits. Collective bargaining agreements and understanding on worker seniority and other expectations have been violated. This frenzy for short-term profit jeopardizing long-term competitiveness goes against all odds. This ignores social responsibility to the workers, the community and to a productive and a competitive economy. In the past companies merged for the simple reason of expansion. Mergers and acquisitions were tools used to increase profits by diversifying into new markets. In contrast many of today's players have neither financial strength nor managerial experience. In the 70's the highest total value of mergers in a year was US$ 12 billion while last year the value of acquisition, merger and take-over deals are said to be a whopping US$ 400 billion. Thus 1998, earned its title the year of the mega mergers.
• The merged company will be renamed Citigroup inc.
• Each company's shareholders will own 50% of the combined enterprise. Citicorp shares will be converted into Citigroup shares at the ratio of 2-1/2 Citigroup shares for each Citicorp share; each Travelers Group share will equal one Citigroup share.
• The combination will be effected through a merger of Citicorp into Travelers Group, which will apply to the Board of Governors of the Federal Reserve System to become a bank holding company. Under present rules, all existing businesses can be retained and operated by the combined company for a two-year period, which may be extended for three additional one-year periods by the Federal Reserve Board. At the end of that period, the combined company will evaluate its alternatives in order to comply with whatever laws then apply to bank holding companies.
• Total debt figures unavailable.
• The merged company will be renamed Exxon Mobil Corporation.
• Exxon shareholders will own about 70 percent and Mobil shareholders are to own about 30 percent of the merged company.
• Both the Exxon and Mobil brands will be retained.
• Total debt US$ 6.6bn.
• Hope not to change the names.
• A combined SBC-Ameritech means growth and enhances the new company's ability to deliver value to consumers through the scale, scope and resources to develop and invest in new technologies. The combined company will be even better able to quickly develop new products and services; ensure the best customer service, and one-stop shopping for telecom needs; compete globally and create home-grown jobs.
• Total debt of Ameritech US$ 5.5bn.
• GTE shareholders will receive 1.22 shares of Bell Atlantic stock for each GTE share they own.
• Based on investments they have already made, and the strategic fit between them, the merged company will immediately have leadership positions and enhanced growth potential in four key businesses : Data, Wireless, Domestic and International calls.
• The merged company will be the world's largest publisher of telephone directories.
• Total debt US$ 27.6bn.
• The merged bank will be known as BankAmerica.
• NationsBank shareholders continue to hold shares in the new company. BankAmerica shareholders are entitled to 1.1316 shares in the new company for each share they owned.
• The Merger created the largest bank in the United States.
• Starting Oct. 1, customers of both Bank of America and NationsBank use nearly 14,000 of the banks' ATMs around the country to make cash withdrawals or transfer funds between primary checking and savings accounts with no ATM fees.
• Total long term debt US$ 27bn.
• Total debt US$ 75.8bn.
• The new company will use the name AT&T.
• AT&T will issue 0.7757 shares of AT&T common stock for each share of TCI Group Series A stock and 0.8533 shares of AT&T for each share of TCI Group Series B stock.
• AT&T will combine its current consumer long-distance, wireless and Internet services units with TCI's cable, telecommunications, and high-speed Internet businesses to create a new subsidiary – AT&T Consumer Services.
• Total debt of AT&T US$ 19bn.
• The merged company will be called Vodafone AirTouch Plc.
• AirTouch shareholders to receive 5 new ordinary Vodafone shares (0.5 ADR) + $9 cash for each AirTouch share, representing a current value for each AirTouch common share of $97 (based on the closing ADR price on 15 January 1999 of $176)
• Vodafone AirTouch will have an unparalleled global footprint of mobile telephony assets, with significant management, operational and technical expertise to capitalise on growth in the dynamic voice and data mobile telecommunications sector.
• The number of worldwide cellular phone subscribers is expected to soar from 285 million in 1998 to 615 million within four years, according to Strategis Group, a telecom consulting company in Washington.
• Total debt US$ 3.7bn.
• Amoco shareholders will receive 3.97 shares of BP Amoco for each share of Amoco held.
• The deal will place the company among the top three oil producers, but worldwide 6,000 people will lose their jobs.
• In order for the merger to take place, both companies have agreed to sell certain parts of their empire and give owners of more than 1,600 petrol stations in 30 cities permission to end their contracts.
• Total debt figures not available.
• The merger creates the DaimlerChrysler AG.
• As over 90% of the Daimler-Benz shares were exchanged for DaimlerChrysler shares voluntarily, shareholders will also receive the additional shares or the cash equivalent from the 0.5% more favourable exchange ratio.
• The Daimler-Benz and Chrysler merger will create the third largest automobile manufacturer in the world.
Total debt figures not available.
• The new company will be known as Wells Fargo & Company.
• Common stockholders of Wells Fargo receive 10 shares of common stock of Norwest in exchange for each share of Wells Fargo common stock.
• The companies will continue providing the same local, hometown service while allowing customers to continue banking when, where and how they want. We remain committed to every community we serve.
• The new company will provide access to 6,065 ATMs and 2,859 banking stores in 21 states.
• Total debt figures not available.
1998 saw many new records, 8 of the 10 largest deals or the centuey took place last year. This trend spilled over to this year too. Daimler Chrysler is now in talks with Honda, Societe General merged With Parabus Bank. More recently five of the world's largest airliners have created "Oneworld."
A global aliance of American Airlines, British Airways, Canadian Airways, Cathay Pacific Airways and Qantas Airways.
This alliance, probably the biggest branding exercise ever launched, is primarily to make it easier to travel the world.
Analysts expect many more mega mergers this year.
Falling prices hit plywood industry
The South East Asia crisis took a heavy toll of the plywood industry. From October 97 declining world prices, for timber and processed timber reduced industry output by almost 65%. Prices for DBBCC grade plywood slipped from US$ 420 MT C+F Colombo to US$ 190 MT C+F.
Ruhunu Plywood, completely shut down their mill, Lakveneer reduced output by about 60% together with Lakply, while the only other small manufacturer of plywood Ms. Damro also reduced production by about 30%.
Certain representations were made to the trade chambers to have the tariff applicable to plywood increased. This though accepted in principle by the Ministry of Finance is still to be implemented. The inordinate delay in implementation has cost this industry over 425 jobs.
The demand for timber for plywood manufacture has declined so significantly that raw materials such as rubber etc. which in the past were used for manufacture of plywood are now being used for firewood.
The only hope for this industry which has a total capacity of 18,000 cubic metres of plywood per annum and approx. 6,300 cubic metre capacity utilization is the increase in tariffs. A shift into value added production once again cannot be sustained with diminishing margins from regular products. In fact it would be a fair assessment to say that combined losses of this industry are in the region of Rs. 38 million.
Unless the present government policy becomes more forward looking and not policy driven by bureaucrats at the IMF and World Bank, the graveyard of the Industry will rest firmly at the gates of the Finance Ministry.
United Tractor & Equipment Limited (UTE) opened a new sales outlet for spares at No. 311, Panchikawatta last week.
The new CAT outlet will carry an inventory of fast moving Cat maintenance spare parts for CAT D4 & D6 type dozer, 428 backhoe loaders and excavators.
It will also provide hose fabrication services together with CAT hoses and re-usable couplings for all types of hydraulic hoses and will be open to the customers on all week days from 9 a.m. - 5 p.m. and till 4.30 p.m. on Saturdays, a news release says.
Apart from the main service and parts facility at Mabole, Wattala, UTE operates a branch office at Anuradhapura.
Caterpillar Inc. based in Peoria, Illinois is a manufacturer of construction and mining products, natural gas engines and industrial gas turbines. It is also a leading global supplier of diesel engines and generators. Caterpillar has been named as the "World's Most Admired Industrial & Farm Equipment Company" for the second consecutive year by Fortune in 1998. The company has nearly 65,000 employees and 74 manufacturing facilities worldwide.
The NAMAL Income Fund (NIF), managed by National Asset Management Limited (NAMAL), completed its first year of operation and announced a second and final dividend of Rs 0.60 per unit for the six month period ending December 31, 1998.
The NIF earlier paid a dividend of Rs 0.50 per unit in July 1998 for the six months ending June 30, 1998, a company release said.
The announcement of the second dividend for 1998 brings the cumulative dividend paid to investors to Rs 1.10 per unit which represents a return higher than 11 per cent per annum.
The NlF which is NAMAL's third unit trust had grown to Rs 109.03 million as of December 31,1998. The Fund was launched in December 1997 and commenced operations after closing the initial offer in February 1998.
Since inception, the Net Asset Value (NAV) of the NIF has reflected the market value of all securities it held. The dividend adjusted NAV had moved from Rs 10.06 per unit in January 1998 to Rs 11.13 per unit in December 1998, the release said.
NAMAL manages three Funds, offering investors several options.
The National Equity Fund (NEF), provides long term capital appreciation and a regular income by investing in listed shares and interest bearing securities. The NAMAL Growth Fund (NGF) provides an investment plan to the investors who seek long-term capital growth for their investments.
NAMAL's shareholders are the DFCC Bank, People's Bank, Employees Trust Fund Board, Asian Development Bank (ADB) and Capital International Inc. of USA.
Soy Foods (F & W) Ltd. has commenced exporting to USA and the Middle East.
Orders will consist mainly of soya in nuggets, although all other products manufactured by the company will be exported, a company release says.
Soy Foods has appointed a sole distributor from Saudi Arabia. the Al Shiha Trading Company, which has undertaken the distribution of Soy Foods products to the Gulf region, excluding UAE.
Soy Foods will begin exports to the Middle East soon, with an initial consignment of one 40 foot container load of TSP products worth US $ 31,500 (Rs 2.1 million). The export order to USA has come through Green Foods Company in Texas for consignments of commercial quantity (20-foot full container load) to be shipped from mid 1999 at regular intervals. Each shipment has a value of nearly US $ 7,500 (Rs 500,000). This order was received following a sample order of the entire range of the company's products sent to USA in October, last year,the release said.
The National Development Bank (NDB) continued its programme to promote lending to the Small and Medium Industries (SMI) sector, with a seminar conducted for the business community in the Sabaragamuwa Province on January 30.
The seminar was organised with the support of the Sabaragamuwa Chamber of Commerce & Industry, and held at the Salika Inn in Kegalle.
The Bank's senior management team in charge of lending to the SMI, explained the financial facilities available through NDB and other participating credit institutions, to businessmen of the region.
A.L. Somaratne, NDB's Assistant General Manager in charge of Small Industry and Branches, and one of the most experienced practitioners in the field of supervised credit, spoke of the Bank's evolving role in SMI lending.
From its initial pioneering role of acting as the apex organisation for the first SMI scheme in the country, the Bank now lends directly through its specialised unit at the head office and through its expanding branch network.
Snr. Managers, R.D. Gunapala and R.D. Abeywardena, explained the lending schemes that are presently in operation for the Small, Medium and Micro sectors, such as the Small & Medium Enterprises Assistance Project (SMAP), the Small & Micro Industries Leader & Entrepreneur Promotion Project (SMILE), the Pollution Control & Abatement Fund (PCAF), FFW micro credit scheme, and the Perennial Crop Development Project (PCDP).
They also shared their experience in the evaluation of projects, and gave the industrialists guidelines for applying for SMI facilities.
At the Open Forum conducted after the seminar, the team responded to questions from the industrialists and asked for their comments and suggestions. They also offered advice on the planning stages and financial management aspects of projects.
The NDB will open its Kegalle Branch at 121/22, Kandy Road, Kegalle, next month.
B.O.C. Travels (Pvt.) Ltd., opened their ultra-modern spacious ground floor office amidst a gathering of airline personnel, well- wishers and staff at 422, Galle Road, Colombo 3. At the opening Gerard Victoria said, they are linked with Amadeus Airline Reservations System. This gives the organisation direct access to the global computerized system of airline reservations. It also enhances the link-up with the fully computerized Sabre Reservation System of AirLanka.
In the vital and troublesome area of visas, B.O.C. Travels provides much needed assistance. Besides, one could receive Travel Insurance and Travellers cheques, Airport Tax coupons etc., under one roof.
The organisation also helps to obtain passport renewals, applications and endorsements. The company also conducted many tours to Dambadiva successfully and have specialized in that area.
Hotel reservations, transport, inbound and outbound tours are other areas of specialization which should benefit its clients, Mr. Victoria said.
The company is a subsidiary of the Bank of Ceylon.
Minister of Transport and Highways, A.H.M. Fowzie, speaking at 11th Annual General Meeting of the Association of Container Transporters said the association was engaged in the important business of transporting goods, an essential activity in the economic development of our country.
"As far as import and export trade of our country is concerned containers play an important and a major role. With containerization the haulage industry has been revolutionised and plays a major role in bridging the gap between the manufacturer, shipper or the exporter and the consignee or the importer. To that extent the haulage industry is the live wire of any economy. This is in fact best expressed in the slogan that ACT sports 'We move the Economy'.
"The government has a clear vision of a sustainable transport policy, which can address the economic, social and environmental issues confronting the transport industry, he said.
"The need for Transport for the economic development and progress of a country is of paramount importance since, it is an integral part of the modern way of life. There is no doubt that transport has acted as the catalyst for the development of the work to its present state. Without an efficient mode of transport, people and goods cannot be moved economically. Domestic and international markets depend on an efficient transport system for continuous growth and development, which is closely linked to quality of life of the people.
"With the assistance of my Ministry, ACT has undertaken to establish a training school for container vehicle drivers in collaboration with the RMV in the vehicle village. This proposal is being studied and it is my belief that properly trained drivers will lesson the incidence of fatal accidents, uplift road manners and prevent traffic congestion", said the minister.
"In the past three decades sizes of container vessels have increased from 500 TEU to 6000 TEU ships, and the 21st century will see 8000 TEU and higher capacity ships which will enable ship owners to reduce the cost per container. Container handling in the Port of Colombo has increased from about 100,000 containers in 1981 to over 1.5 million containers in 1998. Colombo has been establishing itself as a hub port during the past 15 years.
"Due to its geographical location in relation to the East-West sea route, Colombo Port will be in better position to compete with Singapore and Khonokan in the Gulf, for the benefit of not only Sri Lanka but for the entire SAARC region", said Mr. Fowzie.
"The inadequacy of alternate routes for container transport has seen a need to study alternative means. Currently my ministry is studying the proposed rail transport of containers from a location 10 -12 Km. away from the Port of Colombo.
"I am quite certain that efforts in this direction will no doubt find solutions to some difficult problems we face at present and enhance the productivity of our nation," he added.
"Transport of containers by rail has distinct advantages and this should be exploited to the maximum. Road congestion due to container transport could be eliminated to a large extent by rail transport. The difficulty is the requirement of multiple handling at rail origins and terminals. Special trailers suitable for intermodal transport could provide a solution.
" Your association should consider rail transport seriously and I am aware that your president and others had visited sites to identify a container terminal railyard at Ragama, said the minister.
"The government is taking steps to provide better bus and rail transport. The bus fleet has nearly doubled since 1998 due to concessions provided by the government for the import of buses. We are in the process of providing priority bus lanes, signalizing intersections to regulate traffic, provide facilities for pedestrians to separate them from motor vehicles. We have also introduced demand management measures such as parking restrictions on certain sections of roads at certain times of the day," the minister said.
"Among short term measures are the Baseline Road improvement to serve as an inner ring road already started. The first stage from New Kelani Bridge to Borella is nearing completion with a flyover across the Railway at Dematagoda and a Pedestrian Underpass at Borella.
The second stage from Borella to High Level Road and the third stage from High Level Road to Ratmalana will commence this year. The extension of Duplication Road and construction of the Marine Drive and improvement to several other roads in the Colombo City and suburbs are underway at present. It is also proposed to construct two bridges across Kelani Ganga, one at Mattakkuliya and the other at Kelaniya, added Mr. Fowzie.
"Feasibility studies are being done for an outer circular road and it is proposed to commence work on the Colombo-Katunayake Expressway and the alternate Southern Highway this year. Under ADB 4th project 370 km. of trunk roads will be improved. For the first time these projects will include separate facilities for pedestrians.
One other important and urgent matter which the government has addressed in the transporation sector is the high accident rate. A road safety secretariat has been established in the ministry to study and implement measures to reduce road traffic accidents", the minister concluded.
KUALA LUMPUR, Wednesday- Deadly violence by pirates is on the increase, the International Maritime Bureau said on Wednesday in a report which recounted terrifying ordeals at sea.
The bureau, part of the International Chamber of Commerce, said in its annual report it recorded a total of 192 attacks on ships in 1998 compared to 247 in 1997.
"Whilst the figure is less than that for 1997, it is the increasing violence of the attacks which is giving a renewed cause for concern," the bureau said.
"In a recent case all 23 Chinese crew members aboard a vessel were shot dead by the pirates," it added. The bureau said the number of crew members killed by pirates rose to 67 in 1998 from 51 in 1997.
The incident which resulted in the deaths of 23 Chinese sailors took place on the Panama-registered bulk carrier Cheung Son in the South China Sea in November.
"The pirates have confessed to the authorities that they gathered all the 23 crew members on the deck and shot them with machine guns and threw the bodies into the sea," the report said.
In another incident, pirates armed with guns boarded a fishing boat off the Malaysian island of Bohayan near Sabah state in Borneo and demanded the owner to hand over an outboard motor.
"When he refused and attempted to start the engine to flee, the pirates shot him dead. The two children of the deceased jumped into the sea and escaped," the bureau said.
Flamingo Line in Costa Rica has changed its name into the real groups name "ECU-LINE COSTA RICA S.A."
A fortnightly service is offered to San Jose. Departures are based on Durot Shipping and the transit time is 12 days.
Stripping of the container takes place in San Jose because 95% of the importers are located there. Also most of the customs authorities are base in San Jose.
Deliveries to Puerto Lemon, Puerto Caldera or other areas in Costa Rica take place via San Jose.
LONDON, Feb 4 (Reuters) - All 17 crew abandoned a Panama-registered cargo ship off the West African coast on Thursday after fire broke out in a hold, Lloyds shipping service reported.
The container ship Albert Maersk was due to pick up the crew, Lloyds said.The 6,079 gross tonne Mersinia, carrying cocoa from Abidjan to Amsterdam, was passing the coast of Mauritania when the fire occurred.
Office bearers appointed at the annual general meeting of the Association of Container Transporters
President: Tilak Peiris ( McOcean Shipping Ltd.);
Immediate Past President: Niyantha Gunawardena (Ace Containers (Pvt) Ltd.)
President Elect: Mark Alwis (Bridgeway Enterprises (Pvt) Ltd.);
Vice President: Sunil de Silva (Freight Services (Pvt) Ltd.);
Secretary: Niral Kadawathaarachchi (Freight Links International);
Asst. Secretary: Lakshman Rodrigo (Rodrigo Enterprises Ltd.);
Organizing Secretary: Sunil Fernando (Asha Agencies Ltd.);
Treasurer: Rohan Gomis ( Repcon Containers (Pvt) Ltd.);
Upali Jayasekara (Inter Freight (Pvt) Ltd); T.A.A.M. Gomis (Simog Containers (Pvt) Ltd); Jagath Pathirane (Asha Agencies Ltd.); W.D. Francis ( Aloysius Transport Services); Gamal Rahim (Sea Consortium Lanka (Pvt) Ltd.); Anura Samaradiwakara (Nawaloka); Laksiri Mendis(Tatun Transport); Nimal Amerasekera (Fern Tea); J. Chandrakumar ( Tanyo); T.D.V. Gunaratne ( Ceylon Shipping Lines Ltd.); Tilak Perera (Ace Distriparks); Shanaka Perera (Trans Ware Logistics).
"Positive thinking coupled with a good dose of laughter is the recipe for success." This is what Ranjan de Silva, managing partner of Sensei Lanka and Chairman, CIM said at last weeks Sunday Times/Celltel Business Club meeting.
Mr de Silva while cracking numerous jokes that kept the member relaxed and entertained said that work environments were stiff this causes stress, which really is the negative interpretation of pressure.
School or office where ever it may be people are constantly under pressure. People cope differently with pressure.There are instances where some on reaching a critical stage, breakdown and still others who perform better under pressure.
Why are only some people able to cope with pressure better than others? The answer is very simple: positive thinking, though we don't know it.
Whatever the situation, look at its bright side; there is the silver lining in the gray clouds.
Give a hard situation which puts an individual under a lot of pressure. For instance when an individual is given an increased workload or responsibilities he tends to think "I can never finish this on time or how will I do all this work?
This kind of thinking can never make a good leader. Such a leader when given a similar situation would think positively. He would think "how well can I do this task given to me".
He said positive thinking helped bring out hidden sources of strength. But thinking alone is not the solution to stress.Like a good recipe it needs other ingredients too. He said positive thinkers talk positive too. This will encourage others to feel positive.
Relaxation tops the ingredients list. Positive thinkers are usually relaxed. Generally speaking an individual brain starts working better when relaxed.
"I am sure you would have heard the saying: "the best ideas come when in the toilet". Why not? It is a very relaxed environment where one lets go of everything. Why not ideas too?
He said that in a relaxed environment one's thoughts are organised. In an average person very few thoughts pass though given these conditions. Generation of ideas is far more efficient in a relaxed than in a working environment.
Usually children under the age of five remember where they keep things and this is the period when they learn their fundamentals. The information will be retrieved in day to day activities. This is because they are relaxed.
Goals are another factor, he said. It is important in an individual's life. Without goals you would not know the road to success. You would not know this until you get lost.
When an individual has set goals he would also have determination to achieve that goal. For this he would be willing to face any obstacle that comes his way.
To achieve this you need willpower. He said that even a chain smoker had a strong will power. If not would he smoke continuously knowing that smoking is bad for his health and that it might cause cancer. He said that this will power should be put to a positive use, instead of wanting to kill one self by smoking, that will power should be aimed at living a better life.
A 15-member trade delegation led by Pervez Hanif, President, Lahore Chamber of Commerce & Industry, Pakistan visited Sri Lanka from January 28 to 31. This visit was organized by the Sri Lanka High Commission in Pakistan and the Pakistan High Commission in Sri Lanka and co-ordinated by the Ministry of Internal and International Commerce & Food.
The delegation, during their visit, had a meeting with Minister of Internal and International Commerce and Food Kingsley T. Wickramaratne at the ministry. They discussed various business interest with their counterparts - Sri Lankan businessmen at the meeting. Their main interests were in the areas of sugar, rice, textiles, electrical appliances, joint ventures in sugar industry, building materials etc.
The minister received a souvenir from the President of the Lahore Chamber of Commerce at the meeting they had at the ministry. Adbul Basit Haqqan, High Commissioner of Pakistan in Sri Lanka, also attended the occasion. Amal Sendilankara, M.P. Colombo District, was associated with the minister.
By P.M.N. Bandara
The provisional financial statement of DFCC Bank for the six months ended September 30, 1998 shows a decline of income and profit compared to the corresponding period in the previous year.
Gross income of the bank dropped by 13% from Rs. 1428m. to Rs. 1237m. Profit before taxation dropped by 12% from Rs. 460m. to Rs. 403m. However, there had been an increase of profit after taxation from Rs. 298m. to Rs. 315m. This indicates 6% up compared to previous period.
Shareholders' funds as at September 30, 1998 was Rs. 4928m. and it shows an increase of 10%.
The provisional accounts of Distilleries Company of Sri Lanka Ltd., for the six months ended September 30, 1998 shows a favourable performance in terms of turnover, profit and shareholders' funds.
Turnover of the company was up 12% from Rs. 4610.9m. to Rs. 5169.9m. However, net turnover was reduced to Rs. 1102.9m. as the company has paid Rs. 4066.9m. government taxes. This accounts 80% of turnover.
Profit before taxation increased by 13.4% from Rs. 371.4m. to Rs. 308.5m. Increase of profit after taxation was 33% from Rs. 160.0m. to Rs. 213.2m.
Shareholders' funds at close was Rs. 1531.0m. This indicates 24.3% increase compared to corresponding figure Rs. 1230.9m.
Increase turnover and profit are the main features of the provisional financial statements for the nine months ended September 30, 1998.
The turnover including life premium for the period was Rs. 1709.0m. which reflects an increase of 10.3% over the previous year figure Rs. 1549.3m. Profit with Zero taxation was Rs. 35.1m. and it shows a marginal increase of 2%.
Shareholders' funds were up by 9.4% during this period from Rs. 410.6m. to Rs. 449.3m. as a result of increase of capital and revenue reserves.
Colombo Dockyard Limited was able to double its profit during the nine months ended September 30, 1998.
Company's gross revenue was up by 9.2% from Rs. 2143.2m. to Rs. 2342.0m. Whilst profit before taxation increased by 107.8% from Rs. 148.3m. to Rs. 308.2 m. Profit after taxation was Rs. 245.4m. which shows an increase of 128.4%. Increase of profit led to increase shareholders' funds by 33.8% from Rs. 836.4m. to Rs. 1119.2m.
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