Aramex profits up 3pc, unrest bites
Dubai, October 27, 2011
Dubai logistics firm Aramex reported a 3-per cent rise in quarterly profits on Thursday as uncertainties in Egypt and high oil prices weighed on its growth.
Aramex posted a net profit of 48 million dirhams ($13 million) compared with 46.7 million dirhams in the prior-year, it said in a statement.
Revenues rose 19 percent to 651 million dirhams, from 545 million dirhams. "Our operations are experiencing a slowdown due to uncertainties in Egypt and other markets, which has affected business and trade across the whole region," Fadi Ghandour, Aramex's chief executive said in the statement.
The company was forced to suspend its operations in Egypt during the uprising in January. Ghandour also blamed high fuel prices, inflationary pressures on operating costs, increase in overheads, and the increasing cost of doing business in the Middle East due to political uncertainties for the subdued growth.
The logistics firm said it expects to announce new acquisitions in Central Asia and Africa by the first quarter of 2012. The company acquired Ireland-based liner agent and freight forwarder Aquaship Agencies to expand its freight capabilities in Europe. - Reuters