Sterling Products increased exports in 2008

May 24, 2009 News

By Gary Eleazar

Chairman of the Board of Directors of Sterling Products Limited, Dr Leslie Chin, on Friday last reported to shareholders that the exports for the company in 2008 jumped some 7.6 per cent over the previous year accounting for some 11 per cent of total sales by the company last year.
Dr Chin added that with great regional export market potential, the company is concentrating its efforts to penetrate these markets in order to expand its customer base significantly.
The company’s chairman said that there was an increase in turnover in the entity by some 6.1 per cent or by $125M up to $ 2.162B.

Chairman of the Board of Directors of Sterling Products Limited, Dr. Leslie Chin

He pointed out that detergent also illustrated a marked increase with sale, being 6 per cent above the previous year, a trend that has continued from 2007 with a growth of 35 per cent over the year 2006.
“Edible fats sales value increased by four per cent for the year 2008 and this trend of growth is continuing from year 2007 which showed an increase of seven per cent over year 2006….Igloo Ice Cream products and Flavorite turnover was 12 per cent more than last year’s sales.”
In laying the foundation for his report, Dr Chin told the shareholders that in 2008 the world saw an unprecedented vulnerability and volatility in the market place impacting governments, businesses, consumers and other groups.
In 2008, according to Dr Chin, crude oil prices reached a record high of US$147.27 per barrel and this resonated across the world causing price inflation on most items used by consumers.
He pointed out that following the upward trend, prices skyrocketed on the international commodity exchanges causing raw and packaging materials used in the company’s production process to increase dramatically during the year and it had a devastating impact on many businesses and Sterling Products Limited was no exception.
“Most estimates indicate that the recession of the world’s larger economies will continue during year 2009, due to the global financial crisis that started to reveal itself in 2008…A weakening labour market has emerged in the United States of America and this will have a negative impact on remittances to Guyana, and Guyanese consumers’ spending.”
He noted that in the Guyana scenario, 2008 saw the Real Gross Domestic Product (GDP) increase by 3.1 per cent which was a still a reduction of the growth rate from the previous year which was 5.4 per cent.
“There were major declines in sugar, bauxite and forestry…The manufacturing sector declined by two per cent and the official inflation for 2008 was reported at 6.4 per cent.”
Dr Chin pointed out, however, that in spite of the economic constraints globally and locally that severely hampered the overall performance of the company, it still managed to fulfill its duty as a good corporate citizen.
“Although we have had a challenging year, the company continues to pursue a path of good corporate citizenship…We continue to assist charities and other Non Governmental Organizations in community development….In particular we maintain our partnership with the Linden Care Foundation and the Phoenix Recovery Project to assist persons who an infected with HIV/AIDS, and to help children who have been orphaned due to HIV/AIDS.”