Aramex profit up; warns of uncertain outlook
Dubai, February 2, 2012
Dubai's Aramex has warned of an uncertain outlook for the logistics firm in 2012 due to unrest in the Middle East and worries over the global economy, as it reported a 4 percent rise in quarterly profit.
Aramex made a net profit of 57.2 million dirhams ($15.57 million) in the fourth quarter, up from 55 million dirhams in the corresponding period in 2010, the company said in a statement to the Dubai bourse.
Revenue for the quarter reached 682 million dirhams, up 18 percent from 580 million dirhams in the prior-year period. Profit for the year also increased by 4 percent to 211.5 million dirhams.
Uncertainty remains over the outlook for 2012 in light of sluggish global trade and instability in the Middle East, the company's chief executive Fadi Ghandour said in the statement.
"Our performance for this year is expected to maintain this trajectory and we prefer to wait till the end of the first quarter to reassess our outlook for the rest of the year," he added.
In January 2011, Aramex was forced to suspend its operations in Egypt during an uprising that ultimately ended former president Hosni Mubarak's 30-year rule.
In December, the company paid $55.5 million from its internal cash balance for the acquisition of South African logistics firm Berco Express.
The deal was part of Aramex' strategy to expand internationally and follows a recent joint venture with SinoAir in China and the acquisition of OneWorld Courier and In-Time Couriers in Kenya in the first quarter of 2011. - Reuters