Reports: Sri Lankan tyre firm’s profits down June 71%
Sri Lanka listed Kelani Tyres, which runs a joint venture tyre business in cooperation with CEAT of India, has released financial results for the quarter to June 2011 showing that profits fell 71 per cent to 18.9 million rupees compared with a year earlier. The firm reported earnings of 24 cents per share for the quarter, in provisional accounts filed with Colombo Stock Exchange.
The firm said revenues rose 14.8 per cent in the June quarter to 1 billion rupees but the cost of sales rose 23 per cent to 860 million rupees. Raw material prices, specifically natural rubber prices costs have skyrocketed across the global markets and in Sri Lanka during the course of the last couple of years, which provides some explanation for the sharp drop in profitability.
Kelani Tyres reports that it produced 3,537 metric tonnes of tyres in the quarter to June 2011, up from 3,437 a year earlier. Sales in the quarter reportedly fell to 3,414 metric tonnes from 3,562 a year earlier.
Just two quarters earlier Kelani was reporting that profits increased in the quarter to December 2010.