Kuwait-based logistics company Agility has announced a net profit of KD7.8m ($28.6m) for the second quarter of 2011, a 57 per cent decline compared to the same time last year.
The drop in net profit is attributed to result of lost defence and government business. In April 2010, Dubai-based contracting company Anham replaced Agility as the supplier of food and services to the US military in the Gulf (MEED 19:4:10).
Revenue in the second quarter stood at KD331m. Agility’s portfolio of businesses contributed KD36.2m to revenue, which grew 24 per cent compared to the second quarter in 2010.
Commercial logistics revenue, excluding US government contracts, rose two per cent year-on-year.
“Our efforts to align our cost structure with the current business environment, streamline the organisation and refocus on commercial logistics are paying off,” says Tarek Sultan, Agility’s chairman and managing director.
“We made hard choices last year and established a new financial baseline to start 2011. Our commercial logistics gains, combined with our drive to boost return on assets, manage cash conservatively and squeeze out additional cost are moving the company beyond lost government business into a new growth area.”