Agility Q3 net profit up 21pc
Kuwait, November 14, 2012
Agility, a leading global logistics provider, has reported a net profit of KD9.75 million ($34.4 million) in the third quarter, up 21 per cent when compared to KD8.05 million in the same period last year.
The Kuwait-based company said its revenue during the third quarter surged 10 per cent to hit KD363.4 million over last year. Also the revenue in its core commercial logistics business, Global Integrated Logistics (GIL), increased by 4 per cent in relative to the same quarter last year.
Commenting on the results, chairman and managing director Tarek Sultan said, “The third quarter demonstrated that our efforts to transform the company into a more lean and efficient organization are paying off.”
“Even during these tough economic times, we managed to grow revenue and net profit. The company will continue to stay focused and disciplined in order to complete the transformation that we will leverage for future growth,” he added.
Agility's chairman had said in September that the company was gearing up for expansion in emerging markets, much of it in countries that experienced Arab Spring upheaval as new governments spend more on their oil industries and infrastructure.
Agility, which was the largest supplier to the US Army in the Middle East during the war in Iraq, pleaded not guilty in August 2011 to charges it defrauded the US government over multi-billion-dollar supply contracts.
The company's earnings per share (EPS) were at 9.81 fils compared to 8.04 fils last year, posting a 22 per cent growth. Excluding one-off items in the third quarter, Ebitda increased 65 per cent compared to the same period last year.
“Our industry is inextricably linked to world trade flows, therefore the global economy remains the key driver behind GIL’s performance,” remarked Sultan.
“The continuing Eurozone crisis and slow recovery in the Americas, as well as a relative slowdown in China, impacts our business. That said, we continue to make strong gains in emerging markets more generally, and are seeing continued progress with our efforts to contain costs, achieve productivity gains through technological transformation, and realize profitable sales growth,” he added.
Agility’s Infrastructure group, a portfolio of investments in niche markets with presence in the Middle East, Asia, and Africa, continues to perform strongly.
Its Infrastructure companies contributed KD66.9 million to the total revenue compared to KD42.7 million during the same period in 2011. Included in Agility’s results for the first time is the new acquisition of UPAC, a transaction completed during the period.
The UPAC manages real estate at Kuwait International Airport and provides ground handling, maintenance and facilities maintenance services for the private terminal at the airport. UPAC also provides facilities management services at a leading shopping mall in Kuwait.
Agility’s Infrastructure entities are expected to continue to show healthy growth in the coming years, said Sultan.
“Our reinvigorated sales focus, strong presence in growing emerging markets, and track record of outstanding performance in complex and challenging environments, are strong contributors to the positive momentum we have seen in 2012,” Sultan said. “We have worked hard to restructure the business over the last two years, and are beginning to reap the benefits,” he noted.-Reuters and TradeArabia News Service