Aramex CEO cautious on outlook for rest of 2011
Aramex, the global logistics and transportation solutions provider, on Wednesday said its second quarter net profits rose by three percent compared to the same period last year.
It reported a "healthy increase in revenues and net profits" despite the impact of continued instability in a number of its markets in the Middle East and North Africa (MENA) region.
It added that it aims to finalise a number of new acquisitions by the first quarter of 2012.
Aramex’s revenues for the second quarter of 2011 rose to AED648 million ($176.4m), up 16 percent.
In the same period, the company’s net profits rose to AED56.5 million, up from AED55 million, representing an increase of three percent, the company said in a statement posted on its website.
“We are satisfied with our results for the second quarter of this year which are in line with our expectations. In particular, we are encouraged by the strong growth across most of our core markets in the Gulf region,” said Fadi Ghandour, Aramex founder and CEO.
Aramex’s operations in the GCC continued its strong performance from the first quarter of this year, while it saw "continued growth" in European and Asian markets, the statement said.
“Our operations in a number of markets in the region, are witnessing challenging conditions, with a significant drop in our revenues in these markets, while our operations in Libya remain suspended,” added Ghandour.
On the rest of this year, Ghandour said that he "maintained a cautious outlook due to the political instability in a number of markets, and the anticipated impact of higher fuel prices and global inflationary pressure on our operating costs".
He added that Aramex maintained its focus on strategic expansions in key emerging markets in Central Asia, and Africa.