Expolanka Sept net profit down

COLOMBO, Nov 3 (LBO): Turmoil in key overseas markets and lower freight rates has affected the transportation business of Sri Lanka's Expolanka with September quarter profit also eroded by the absence of businesses spun off before it went public. Expolanka Holdings group net profit fell 18 per cent to 301 million rupees in the September 2011 quarter from a year ago while sales fell 23 per cent to 6.9 billion rupees, a stock exchange filing said. Basic earnings per share for the September 2011 quarter fell to 15 cents from 21 cents the year before while for the six months ending September 2011 net profit was down five percent to 575 million rupees with EPS falling to 29 cents from 34 cents. It said income in the six months to September include revenue and profit of 2,891 million rupees and 68 million rupees attributable to subsidiary companies disposed of before it listed on the stock exchange. Cost of sales in the September 2011 quarter fell 26 per cent to 5.5 billion rupees. Other income rose 60 per cent to 168 million rupees. Expolanka group chairman Osman Kassim said group year-to-date net profit excluding the results of subsidiaries which were disposed of grew by seven per cent. "Whilst achieving these results your company had to face many challenges in the international trading sector with regard to the regional economic and political issues that prevailed in the Middle East," he told shareholders. "This also impacted the transportation sector to an extent with the slowing down of cargo movements during the quarter. "However, due to the economies of scale, improved cost management resulting in better operating leverage, the strength in being a regional player and owing to the extension on the supply chain, this segment was able to increase its margins for sustainable profits," Kassim said.