Fabric manufacturer and distributor Veltex Corp has posted record third quarter sales of $5.4 million and pre-tax operating profit of $1.1m.

The California-based company, which has a plant in Bangladesh and makes casual apparel, also revealed it sees fiscal 2003 sales of $33m and a net profit of $8.6m based on its current acquisition and internal growth.

Chairman and CEO Javeed Matin said: "This was a very strong quarter for Veltex, our profit margin was 22 per cent, down from the 26 per cent recorded in the prior period. This was primarily caused by the lower incentives paid out by the government of Bangladesh on exports.

"Our core business remains strong and we are investing our profits into producing more goods, and accelerating our business plan."