Agility Q2 net profit down 52pc
Kuwait, August 12, 2010
Kuwait-based logistics firm Agility posted a 52-per cent fall in second-quarter net profit, the company said.
Net profit in the three months to June 30 was 18.1 million dinars ($62.9 million), down from 38.0 million dinars in the same period a year earlier, Agility said in a statement on the Kuwaiti bourse website on Thursday.
The firm, formerly Public Warehousing Co (PWC), was dropped from supplying food to the US Army in Iraq, Kuwait and Jordan after being accused of overcharging the military.
The company held contracts with the US military worth $8.5 billion spanning more than three years. Net profit in the three months to June 30 was 18.1 million dinars ($62.9 million), down from 38.0 million dinars in the same period a year earlier, Agility said in a statement on the Kuwaiti bourse website on Thursday.
The firm did not provide a reason for the profit drop. Analysts surveyed by Reuters had expected Agility's second-quarter net profit to range between 14 million and 17.9 million dinars.
On Sunday, the logistics firm confirmed that US prosecutors have moved to dismiss fraud indictments against its subsidiary, Agility Holdings.
Agility has said it is still negotiating a settlement with the US government, but it is not clear if it could lead to lifting the ban on bidding for any new contracts.
Net profit in the first half of the year was 35.7 million dinars, down from 74.9 million dinars in the year-earlier period, Agility said in the statement on Thursday.
Total assets in the six months to June 30 was 1.6 billion dinars, while shareholders' equity stood at 951.3 million dinars. -Reuters