Agility quarterly profit falls 50pc to US$71.97 million

KUWAITI global logistics company Agility's second quarter operating profit dropped 50 per cent over the previous year to KWD20.74 million (US$71.97million) but increased nine per cent quarter to quarter.

Revenue increased three per cent year on year and by six per cent over the previous quarter to KWD428 million, said UK's Transport Intelligence.

Revenue from its key subsidiary Global Integrated Logistics (GIL) grew 23 per cent year on year to KWD305.53 million with second quarter "net revenue margins" valued at 23.8 per cent against 31.8 per cent in last year's second quarter. While business grew, higher freight charges hurt forwarding operations, the company said. Its forwarding/contract logistics business mix impacted its margins that were already slim due to price competition.

Second quarter profit from Agility's Defence and Government Services (DGS), which battled the US Justice Department in an alleged overbilling case, was not declared but revenue was reported to have slid five per cent over first quarter to KWD126 million.

Legal troubles however, have not affected its contract to support US forces in Iraq and Kuwait, which remain "operational" and have been "effectively prolonged" until December 4 by the US Defense Logistics Agency. It was earlier speculated that Agility would either cancel or transfer its US contracts to Anham FZCO but got an extension, as delay in the hand over to Anham would have disrupted supplies to the US armed forces, the report said.
(Source:www.schednet.com)