Hayleys MGT reports US$ 1.9 mn profit at 3Q end

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

Both turnover and profit declined in the third quarter of the year, when compared to the corresponding period of last year.

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 per cent drop in its cost of sales through a combination of lower energy costs and lean production practices, Weerasinghe said. However, the drop in prices and volumes in the third quarter had resulted in a decline of 7 per cent 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, Weerasinghe said.