Government logistics revenue boosts Agility profit
Kuwait-based global logistics company Agility posted a 3 percent increase in first half net profit, to $261.3 million, while revenue declined 9 percent to $2.9 billion.
'Despite being faced with reduced volumes in freight forwarding since the start of the economic downturn, I believe that our strong financial performance in the first half of 2009 is a testament to our 'agility' and continued emphasis on driving efficiencies,' said Tarek Sultan, chairman and managing director of Agility. 'We are seeing those efforts pay off in the form of important customer wins, lower operating expenses, improved margins and a strong balance sheet. In this current environment of economic uncertainty, however, we also continue to focus on working capital management, a favorable net debt position, and healthy cash generation from our operations.
'In the past we invested more than 60 percent of our capex in our logistics business in the emerging market and we are now seeing the returns on that investment as the Middle Eastern commercial logistics market continues to grow amidst this crisis,' Sultan added. 'Our government business is also continuing to grow and acts as a further hedge during this downturn.'
Agility's commercial logistics unit saw revenue sink 15.8 percent to $1.7 billion due to reduced trade volume, the company said. Revenue from defense and government services increased 4.3 percent to $1.2 billion.