Strong manufacturing performance for Haycarb

Strong performances from all its manufacturing operations in Sri Lanka as well as those in Indonesia and Thailand and the impact of better working capital management helped Haycarb PLC to a solid 9-month results status.

The company also said a greater focus on value-added carbons in its product mix, higher sales prices and stable charcoal supply in the first nine months of 2007-08 also enabled Haycarb to make a noteworthy recovery from a difficult previous year.
Pre-tax profits grew Rs 250 million for the nine months ending December 31, 2007 from Rs 45 million in the same period of the last financial year. Post-tax profit of Rs 230 million, reflected a growth of more than 500 per cent over the corresponding nine months of 2006-07.

Turnover for the period reviewed grew by 36 per cent to top Rs 3 billion. Haycarb's encouraging bottom line performance was also reflected in its earnings per ordinary share, which increased from 49 cents as at December 31, 2006 to Rs 6.67 at the end of 2007.

Haycarb Managing Director Ananda Hettiarachchy said the Group had been able to reduce stock by Rs 191 million, thereby generating significant savings in the nine months reviewed.