Financial Times

Singer Ind. recovers from losses
Singer Industries, which closed its loss-making TV assembly plant in August 2004, has recovered in the first half of the year after a disastrous six-month period in 2004.

The company reported a net profit of Rs. 4.9 million in the six months to June compared to a loss of Rs 34.4 million in the same 2004 period. Singer said in a statement that the recovery was due to the closure of the TV plant which resulted in profits from normal activities rising to Rs 18.4 million against Rs 3 million earlier.

Singer said it was committed to downsizing operations and operating with a limited workforce and lower working capital. The workforce was reduced to 206 from 220 at the beginning of the year while bank borrowings also eased by Rs 10.5 million to Rs 39.2 million.

Chairman Hemaka Amarasuriya said a problem of a shortage of components to assemble sewing machines to meet growing market demand was rectified and “July-December promises to be a more productive period.”

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