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Sri Lanka fabric maker hit by high cotton prices, lower sales

Aug 20, 2010 (LBO) - Sri Lanka's Kuruwita Textile Mills said it made a net loss of 125 million rupees in the June 2010 quarter as it was hit by record high cotton prices and less demand.
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Sales fell almost five percent to 1.3 billion rupees over the period, the company, a unit of clothing exporter Brandix Textile Holding, said in a stock exchange filing.
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The firm, which supplies treated fabric to garment manufacturers, said it had a loss per share of 5.01 rupees in June 2010 against a profit of 0.

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11 rupees the year before.

Kuruwita had made a marginal profit of 2.

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8 million rupees in the June 2009 quarter.
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Finance costs fell 73.2 percent.

Chairman Aslam Omar said past trends and effects of seasonality, which sees the first and second quarters of the year showing losses, continued this year as well.

"We believe this seasonality would remain during the second quarter as well.

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However, we are hopeful that strong third and fourth quarter earnings will provide the shareholders of the company with positive returns," Omar said.
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" . . . open capacity in our production plant led to a decline in revenue," he said in a statement.

"This decline in top line

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