Agility posts 11% rise in net profits in 2009
Kuwait-based logistics major Agility posted an 11 percent increase in net profits over the course of last year, while revenues slipped by seven percent during the same period.
However, revenues in the last quarter picked up by one percent, which Agility said was evidence of a strong finish to the year.
The delayed announcement of 2009 results come during a time of uncertainty for the company, which is awaiting the outcome of a contract dispute with the US military, one of its biggest clients.
In its results announcement, Agility warned that “there was no guarantee that the parties can reach a mutually agreeable settlement”.
Full-year operating profits rose by five percent to $585m, and the company also managed to slash its debt by 76 percent to $135m.
“2009 was a mixed year for Agility,” said Agility chairman and managing director Tarek Sultan. “On one hand, the company was able to report solid operational profits, continue to grow its emerging market footprint, and attract a number of important new customers around the world.”
“This is particularly significant given a global financial crisis that hit the logistics industry hard overall. On the other hand, Agility is facing a number of challenges, including the slower-than-expected recovery from the global economic recession, the troop drawdown in Iraq, and the ongoing legal issues,” Sultan added.
Agility’s board of directors has recommended distributing cash dividends of 40% of par value (40 fils per share).