Agility's quarterly net profit falls to US$27.88 million

KUWAITI logistics provider Agility has announced that its first quarter 2011 net profit fell to KWD7.70 million (US$27.88 million) year on year, down from the KWD17.59 million earned over the same period last year.


First quarter revenue fell 21 per cent year on year to KWD318.51 million, reflecting costs related to the restructuring and reduction of its defence and government business, following the continuing withdrawal of US troops in Iraq.


Revenue from its core business, global integrated logistics (GIL), contributed KWD286 million to the total, up 12.3 per cent compared to the first quarter of 2010. This growth represents a like-for-like comparison, which excludes revenue from government contracts and the company's Qatar operations, given the recent merger with Gulf Warehousing Company.


All regions contributed to the growth in GIL's revenue, with the biggest gains continuing to be made in emerging markets located in the Middle East, Asia, Eastern Europe and Latin America.


Its portfolio of businesses contributed KWD39 million to total revenue in the first quarter, and this figure includes its defence and government services unit for the first time. This portfolio also includes the company's real estate business, which was the main contributor to revenues in this portfolio, national aviation services (NAS), the metal and recycling company (MRC), the gulf catering company (GCC) and global clearinghouse systems (GCS).


The merger with Gulf Warehousing Company (GWC) in Qatar resulted in a KWD7.86 million one-off gain this quarter. The company said it will now report its commercial business without the consolidation of Qatar, which would have contributed over KWD8 million in pre-tax profit for 2011.


Improvements in working capital management resulted in an operating cash flow of KWD15.15 million and free cash flow of KWD11.7 million, it said.


"After a year of adjustment in 2010, which included a transition away from government business, 2011 represents a new financial benchmark for Agility," said Tarek Sultan, chairman and managing director.


"Our commercial business is steadily growing. We are acquiring new customers, expanding our business with existing customers, and transforming our operating platform to execute more efficiently," he said. "We have reduced SG&A costs 20.43 per cent this quarter and are continuing our efforts to streamline the organisation while improving productivity."
(Source:http://www.schednet.com)