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• Hatton Bank remains group's mainstay
  Brown's arm directors to sell off surplus assets
  Brown and Co. Ltd. has summoned an extraordinary general meeting of shareholders on October 22 to consider a resolution amending its articles of association to empower the directors to sell any property of the company - movable or immovable, corporeal or incorporeal, in whole or in part if the board considers it necessary or expedient to do so in the company's interest.

  Shareholders have been told that following the closing of the company's engineering operations, some of the properties it holds are surplus to its requirements. It would therefore be prudent to sell off some of these immovable properties and assets. (full story)

• Chairman optimistic despite thin year at Ceylon Glass
  The Ceylon Glass Co. Ltd., the country's only manufacturer of glass containers, has seen its post tax profit plunge by 51% despite a turnover increase of 9% in the year ended March 31, 1998, shareholders have been told.

  The year under review saw turnover rising to Rs. 560.8 million from Rs. 512.9 million the previous year. But the operating profit dropped to Rs. 73.5 million from the previous year's Rs. 108.6 million. Other income too was down to Rs. 0.3 million (Rs. 5.5 million a year earlier). Interest cost was down to Rs. 41.7 million from the previous year's Rs. 48.9 million. The pre-tax profit of Rs. 32 million was half the previous year's Rs. 65.2 million. As in the previous year, there was no tax liability due to adjusted tax losses. (full story)

• Rs. 62 million provision made against possible losses
  Shaw Wallace claims turnaround but Bonaventure problems remain
  Asset rich Shaw Wallace and Hedges claims to have come out of the woods in the year ended March 31, 1998, with a profit of Rs. 9.2 million, up from Rs. 1 million a year earlier, and the directors have recommended a dividend of 10% free of tax to shareholders.

  But a careful reading of the company's accounts now with shareholders indicates that a problem remains with regard to its associate, Bonaventure Textiles (Lanka) Ltd. which is under liquidation. (full story)

• Rohini quits two more boards following Seylan appointment
  Mrs. Rohini Nanayakkara, the new chief executive officer of the Seylan Bank, has resigned from the boards of two more listed companies of which she was a director.

  The Colombo Stock Exchange has announced that Mrs. Nanayakkara, a former general manager of the Bank of Ceylon, has resigned from the Merchant Bank of Sri Lanka Ltd. of which she served as CEO for a few months, and of Carson Cum-berbatch and Co. Ltd. with effect from Sept. 30. Earlier she resigned from the board of Union Assurance Ltd. (full story)

• Correction
  Interocon's retained loss Rs. 43 mn.

  A printer's devil crept into the headline of our report last week on the results of Hotel Services Ltd., owners of the Hotel Ceylon Intercontinental. The company's retained losses as at last balance sheet date was Rs. 43 million and not Rs. 452 million. The correct retained loss figure appeared in the body of the report.

  The error is regretted.

• Globalization and Polarization
  Unequal benefits of globalization, in particular of trade and investment referred to earlier, have tended to bring about polarization of the world and society. Globalization has widened the gap between the developing and developed countries and between the newly industrialized economies and other developing countries. In the past 30 years, the vast majority of developing countries - about 84 out of 108 - have either stayed in the lowest income quintile or fallen into it from a higher one. Between 1990 and 1995 alone, GNP per capita of low income countries fell from 1.79 per cent of the GNP per capita of high income countries to 1.72 per cent. Average per capita income of Africa for instance, fell from 14 per cent of the average income per capita of developed countries in 1965 to just 7 per cent in 1995. (full text)
• Perspectives on Globalisation
  Some see in the recent economic turmoil, a retreat for globalisation. Globalisation has never been a continuous straight path. Despite much loose talk about the "New global economy" today's international economic integration is not unprecedented. During the last quarter of the nineteenth century there was a similar movement towards cross border flows of goods, capital, people and technology. The advent of steam ships and the introduction of railways spearheaded this earlier globalisation. Transport costs came down dramatically and many goods entered international trade. There was also the rapid industrialisation and integration of the whole US economy through the railways. (full text)
• Cargo Boat well on the road to recovery
  Despite two bomb blows, the Cargo Boat Development Company Ltd. is well on the road to recovery with its building now almost fully occupied and, in the words of its chairman, "much needed cash flows and profit generated.''

  The chairman, Mr. R.B. Thambiayah, has reported to shareholders that the rehabilitation work necessitated by damage suffered in the Central Bank blast was substantially completed by February 1997 and the financial year 1997/98 saw the leasing of almost all the floor area of the building. (full story)

• Molasses now wasted
  Alcohol distillery will add to Pelwatte's viability
  Pelwatte Sugar Industries Ltd. (PSIL) expects the commissioning of its Rs. 500 million distillery to substantially improve the results of the company with an annual 20% rate of return, the company's chairman, Mr. Mahinda. P.B. Senanayake, has said in the company's annual report and accounts for 1997/98 now with shareholders.

  Senanayake, however, has not indicated when this distillery, in which the company has invested Rs. 320 million from its own resources and funded the balance through a People's Bank loan, will become operational. (full story)

• 125% dividend, 4 for 1 bonus shares
  Millers boom on Kraft and Kodak
  Millers Ltd., the well known department store owner and importer had a successful year ended March 31, 1998, when the company returned to profitability, posting an after-tax earning of Rs. 32.8 million against the previous year's loss of Rs. 52.2 million.

  Kraft food products and Kodak films and photographic material had as in previous years been the company's major money spinner according to its recently published annual report and accounts now with shareholders. Processed cheese led sales in the Kraft range. (full text)

• Force to trim margins to stand up to competition
  Coco Lanka too feels bite of East Asian crisis
  Coco Lanka Ltd., Sri Lanka's only liquid coconut milk processor and exporter, has felt the bite of the East Asian crisis and been compelled to reduce prices in the latter part of the last financial year to compete with suppliers from countries benefiting from the devaluation of their currencies.

  Nevertheless, the company had reached maximum export capacity although profits were down from the pervious year. The bottom line for the year ended March 31, 1998, was Rs. 23.9 million, down from Rs. 28.6 million a year earlier. (full story)

• Improved profitability enables 50% dividend from Sathosa Motors
  Sathosa Motors Ltd. (SML), the agents for the Isuzu range of vehicles in Sri Lanka, has earned an after tax profit of Rs. 49.3 million in the year ended March 31, 1998, up from Rs. 38.2 million a year earlier, enabling the directors to recommend a 50% dividend to shareholders.

  Sathosa's holding company is the Itochu Corporation of Japan, a part of the Itochu Group which holds a minority interest in Isuzu Motors of Japan. Itochu who run a Colombo office owns 60% of SML. Other major shareholders include the Ceybank Unit Trust (8%), Thurston Investments, Central Finance John Keels Holdings and its subsidiary, Waldock Mackenzie and some banks. All these shareholders own less than 10%. (full story)

• New floor on the cards
  Asiri Hospital running full, and increasing profitability
  Asiri Hospitals Ltd. has completed a very successful year ended March 31, 1998, with group turnover rising 26.6% to Rs. 285.7 million and net profit after tax increasing 79% to Rs. 52.4 million, the company's annual report and accounts said.

  The company's chairman, Mr. D.K. Subasinghe, said that their subsidiary, Asiri Diagnostic Services (Pvt) Ltd. had done well posting a turnover of slightly over Rs. 4 million and earning a net profit of Rs. 1.6 million for the year. (full text)

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