Agility profits drops 66pc as US troops quit Iraq

KUWAIT-based logistics firm Agility has announced a year-on-year 66 per cent decline of profit in the third quarter to KWD13.8 million (US$49m) because of continuous loss of US army logistics as US troops withdraw from Iraq.

The third quarter revenue was down 1.8 per cent to KWD405 million, reported London's International Freighting Weekly. Because of an ongoing US Justice Department prosecution against the company overcharging, Agility also failed to obtain new government business and was stopped from supplying food to the US Army in Iraq, Jordan and Kuwait.

But the impact was partly offset by growth in Agility Global Integrated Logistics (GIL), a subsidiary in emerging markets focusing on project logistics, fairs and events and chemical and fuel logistics.

The division's revenue increased 26 per cent in the third quarter year on year. Divisional chief Tarek Sultan said: "2010 has been a year of transition for Agility. Although we anticipate continued challenges through the middle of 2011, we believe that, with a renewed commitment to discipline, we will emerge as a stronger and more flexible company.

"The GIL will continue to drive the company's growth into 2011 and beyond. Emerging markets are where we have grown our business, and emerging markets are where we have an edge over the competition."
(Source:www.schednet.com)