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[September 2008]
Sri Lankan Tableware Sees Sales Fall-Off Due To Strike
LBO reports that the major Sri Lankan tableware exporter Dankotuwa Porcelain, whose production was disrupted by a strike by workers, made a net loss of 43 million rupees in the second quarter of 2008. This compared with a net loss of 1 million rupees in the same period a year ago.
Interim results released by the company showed that sales for Q2 2008 fell 6.8% to almost 300 million rupees from 322 million rupees in Q2 2007.
The net loss for the first half ending 30 June 2008 was 42 million rupees compared with a net profit of 2 million rupees in the same period a year ago while sales were almost the same at 658 million rupees.
"The company experienced a work stoppage and labour unrest during May and June," Dankotuwa said in a note accompanying the accounts. "Now this has been resolved satisfactorily."
Dankotuwa's sales suffered in May and June when a strike disrupted manufacturing operations, forcing it to slow down its kilns, reschedule production and delay shipments. A deal with labour unions with the intervention of the labour ministry in Sri Lanka helped Dankotuwa resume production.
www.dankotuwa.com
ENDS