Sri Lanka Kelani Valley reduces loss with Dec quarter gains

Feb 11, 2010 (LBO) – Sri Lanka™s Kelani Valley Plantations said higher tea and rubber crops and prices in the December quarter had helped reduce losses although it still ended 2009 in the red. The company, part of the Hayleys group, said it made a profit of 179 million rupees in the December quarter compared with a loss of eight million rupees a year ago.

Sales during the quarter went up 70 percent to 997 million rupees, the company said in a stock exchange filing.

Basic earnings per share for the December quarter were 5.26 rupees compared with a loss of 0.23 rupees the year before.

But Kelani Valley Plantations (KVPL) it still ended up with a loss of 43 million rupees in the year ended December 31, 2009 compared with a profit of 276 million rupees the year before.

Sales during 2009 fell eight percent to 2.86 billion rupees compared with the previous year. The company made a loss of 1.25 rupees per share during the 2009 financial year compared with earnings of 8.11 the previous year.

KVPL and Hayleys group chairman Mohan Pandithage said the oil price trend would be critical for the company.

As long as oil prices sustain current levels, rubber prices may reaso