Sri Lanka’s Kuruwita Textile Mills back in profit

Feb 20, 2012 (LBO) – Sri Lanka’s Kuruwita Textile Mills returned to profit in the December 2011 quarter helped by lower cotton prices and lower costs from a revamp that included shedding staff. The firm, which supplies treated fabric to garment manufacturers, said it made a December 2011 quarter net profit of 13 million rupees against a loss of 108 million rupees a year ago.

Sales of the firm, owned by apparel exporter Brandix Textile Holdings, rose 31 percent to 1.7 billion rupees during the period, a stock exchange filing said.

Earnings per share of Kuruwita Texile Mills were 53 cents in the December 2011 quarter against a loss of 4.34 rupees the year before.

EPS for the nine months ending December 2011 fell slightly to 11.05 rupees from the previous year with the nine-month net loss falling to 276 million rupees from a loss of 282 million rupees.

Sales in the nine-month period went up 18 percent to 4.6 billion rupees from the year before.

Aslam Omar, chairman of Kuruwita Textile Mills, said the company turned around during the December 2011 quarter.

Net profit for the quarter would be 91 million before accounting for a Voluntary Retirement Scheme which cost 7