Sri Lanka graphite exporter returns to profit

May 03, 2010 - Sri Lanka's listed graphite miner and exporter Bogala Graphite swung back into profit in the March 2010 quarter after losses last year as sales recovered and it reduced costs by shedding staff.
The company, a subsidiary of Graphit Krophmuhl AG of Germany, made a net profit of 26.6 million rupees in the quarter compared with a loss of 19.5 million rupees in the same quarter a year ago, a stock exchange filing said.
Earnings per share were 0.56 rupees compared with a loss per share of 0.41 a year ago.
Revenues in the March 2010 quarter rose 42 percent to 97.7 million rupees and gross profit shot up 345 percent to 27.3 million rupees.
The accounts filed with the stock exchange showed foreign currency exchange gains rose 435 percent to 19.7 million rupees in the March quarter from a year ago.
The Bogala Graphite management had forecast a turnaround with orders recovering, reduced costs through a voluntary lay-offs scheme and it began marketing a new product, graphite-based lubricants, in India.
The product is being initially produced in Germany from raw material exported by Bogala Graphite.
Losses in the financial year ending December 31, 2009 rose to 127.7 million rupees from a loss of 100 million in 2008 owing to a slowdown in sales because of recession.
The company is one of the world's few vein graphite producers and used to export around 6,000 - 6,500 tonnes of value-added graphite each year before the global recession.