Floods cause June quarter loss at Sri Lankaâ€™s Hayleys Fabric
ECONOMYNEXT – Floods which disrupted production caused Sri Lanka’s Hayleys Fabric to make a loss of Rs25 million in the June 2017 quarter compared with a net profit of Rs33 million a year ago.
Sales were flat at Rs2 billion, according to interim results filed with the stock exchange by the fabric manufacturer previously named Hayleys MGT Knitting Mills, a unit of the Hayleys group.
It reported a loss per share of 12 cents compared with earnings per share of 17 cents a year ago. The share last traded at Rs16.
Hayleys Fabric said in a statement its plant was forced to shut down in the last week of May because of the flooding of Kalu Ganga while in June most of the employee homes were under water for several days leading to heavy absenteeism.
The factory also usually makes a loss in April owing to traditional new year holidays and plant closure for maintenance.
The company said it has a full order book and hopes to recover in the second quarter.
(COLOMBO, August 02, 2017)