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Shipping Woes

Feb 20, 2012 (LBO) - Sri Lanka's Mercantile Shipping Company said it made a net loss of 12 million rupees in the December 2011 quarter compared with a profit of 4.


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4 million a year ago. Mercantile Shipping Company, through a subsidiary, acquired two new ships in recent years and the accounts showed it provided for 131 million rupees as depreciation during the period.
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The company's sales fell 19 percent to 111 million rupees, a stock exchange filing said. It made a loss per share of 4.19 rupees in the quarter.

Mercantile Shipping Company made a loss per share of 12.



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14 rupees in the nine months to December 2011.

The company's losses rose to 35 million rupees in the nine-month period from a loss of 4.



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3 million rupees the year before while sales fell five percent to 385 million rupees.
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Shipping companies have been struggling with low freight rates in recent years.

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