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Sri Lanka fabric maker’s June quarter profits hit by floods

July 25, 2008 (LBO) - Hayleys MGT Knitting Mills, which supplies knitted fabric to Sri Lanka's apparel industry, said June quarter net profit fell 19 percent to 705,228 US dollars (76 million rupees) after floods disrupted production.


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The company, a unit of the Hayleys group, said in a statement turnover grew 14 percent to 14.


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9 million US dollars in the first quarter of the 2008-09 financial year compared with the same period a year ago.

Hayleys MGT has a production capacity of four million metres of fabric a month at its plant at Narthupana Estate in the Kalutara District, south of Colombo.

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The company is a key supplier of knitted fabric to the Sri Lankan apparel industry and to export markets.

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Hayleys MGT Joint Managing Director Bandula Weerasinghe said that floods in the Kalutara District in the first week of June had isolated the company's manufacturing plant, making it accessible only by boat.

As a result, the company had lost about 100,000 kilograms of production, which would have contributed 700,000 dollars to revenue, the statement said.



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"If not for this unfortunate occurrence, the company's performance would have been on par with that of the first quarter of 2007-08, despite the significantly higher

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