Hayleys MGT Knitting Mills, the Hayleys Group’s cotton and synthetic manufacturing business, saw turnover up by 4% to US$ 46.5 million for the nine months ending December 31, but profits were down sharply. Turnover in the third quarter however reflected a decline of 10 % over the corresponding quarter of the previous year, according to a company statement.
This 9 month turn over was achieved in the face of postponements and reductions in orders from customers as a result of a downturn in retail business in international markets, Hayleys MGT Joint Managing Director Bandula Weerasinghe said.
“This softening of demand, coupled with higher furnace oil costs in the first two months of the third quarter had impacted adversely on profit growth in the period under review,” he said in the statement.
The company’s post-tax profit (after Economic Service Charge) at $ 2.115 million reflected a decline of 48 % over the first nine months of 2007- 08, due to the erosion of margins and lesser demand. However, margins are expected to improve in the final quarter of the year due to a reduction in energy costs as a result of a revision in furnace oil prices, Mr. Weerasinghe said.
|
E-mail