Agility posts flat Q2 net profits
Kuwait, August 14, 2012
Kuwait-based Agility, a leading global logistics provider, made a profit of KD7.82 million ($27.71 million) in the second quarter (Q2) of the year, against KD7.83 million in the same period of 2011.
Revenue and EBITDA were KD348.8 million and KD18.9 million, respectively.
Earnings per share for the second quarter were KD0.0079 compared to KD0.0078 a year earlier, it said.
“We started 2012 off on the right track, and our mid-year results show that both our internal transformation and business development efforts are paying off,” said Tarek Sultan, Agility’s chairman and managing director. “EBITDA adjusted for one-off impacts shows a 63 per cent improvement relative to the same period last year.”
“Although we feel the effects of the broader slowdown in the economy, we continue to improve our operational performance during these challenging times. We are making good progress in our efforts to transform our business through technology, improved financial discipline, and focus on under-performing entities.
“We have also seen strong sales growth in emerging and challenging environments. For example, our scope of work to support the world’s largest natural gas project in Western Australia has grown substantially and is estimated at A$232 million ($244 million) over the next two years,” Sultan added.
Revenue from Agility’s core Global Integrated Logistics (GIL) business increased by 1 per cent in Q2 2012 relative to the same quarter in 2011.
GIL’s growth strategy is based on differentiated product offerings, a unique sales approach, improved customer service and quality, operational productivity and disciplined management of cost, cash and working capital.
GIL continues to be the main driver behind Agility’s overall growth. It holds a leading position in emerging markets in the Middle East, Asia, Eastern Europe, and increasingly Latin America and Africa.
Agility's Infrastructure group contributed KD58.4 million to total revenue in Q2 2012 compared to KD45.2 million last year.
Agility’s real estate business remains the main contributor to revenue of the Infrastructure group, growing 21 per cent in Q2 2012 relative to the same quarter in 2011. Other Agility Infrastructure businesses have also shown continued growth compared with 2011.
Agility’s Q2 2012 results are the first to include those of newly acquired business, United Projects for Aviation Services (UPAC). UPAC manages real estate at Kuwait International Airport and provides ground handling, maintenance and facilities maintenance services for the private terminal at the airport.
UPAC also provides facilities management services at a leading shopping mall in Kuwait. UPAC is a natural strategic fit for Agility and builds on the strengths of Agility’s Infrastructure portfolio companies.
“Our reinvigorated sales focus, strong presence in emerging markets that are continuing to grow, and track record of outstanding performance in complex and challenging environments are strong contributors to the positive momentum we are seeing in 2012 so far,” said Sultan.
“We have also worked hard to restructure the business over the last two years, and are beginning to reap the benefits.”
“Although the global economic outlook is likely to continue to be uncertain for the rest of the year, I am confident Agility is moving in the right general direction. We have shown our ability to adjust, adapt, reinvent and address problem areas head-on, living up to our name – Agility,” he concluded. – TradeArabia News Service