Aug 20, 2009 (LBO) – Sri Lanka’s United Motors Lanka (UMLL) made a 132 million-rupee loss in the June 2009 quarter as sales almost halved owing to weak orders from government ministries and the private sector.
UMLL’s June quarter revenues plummeted 45.1 percent to almost 990 million rupees, while cost of sales dropped 50 percent from the corresponding quarter of 2008.
Gross profits were down 32.4 percent to 322.7 million rupees.
UMLL is the local agent for Japan’s Mitsubishi and India’s TVS motorcycles.
Mitsubishi Montero sports utility vehicles, popular amongst politicians, senior civil servants and corporate executives, is one its most profitable models.
However, weak economic growth and high import taxes on vehicles have slowed down sales, analysts said.
In the June quarter the motor company’s administrative expenses dipped 7.3 percent to 176.6 million rupees, while net finance expenses increased 6.5 percent to 213.8 million rupees from the same period last year.
Income tax expenses were down almost 60 percent to 10.2 million rupees in the June quarter 2009.
Group assets in property, plant and equipment gained 4.6 percent to 1.16 billion rupees, while net leas