Aramex commits to expansion in 2009

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GROWTH PLAN: Aramex says it still plans to expand in 2009 despite a slowdown in Q4 of last year.

Logistics company Aramex insisted on Thursday it is still planning to expand through acquisition in 2009, despite seeing a drop in revenues during last year’s fourth quarter.

The UAE company said the financial crisis and holiday season contributed to the revenue decline. But Aramex still posted $39.1m net profits for 2008 – up 21 percent from 33m in 2007.

“Our fourth quarter revenues have slowed to a halt, a result of the global financial crisis, with December showing the most weakness,” Aramex CEO Fadi Ghandour said.

“We have a very healthy balance sheet with little debt, and we intend to keep it that way in 2009. Meaning: We will only embark upon new acquisitions if the value is very attractive in key strategic markets.”

Ghandour said an increase in public holidays across the Middle East and “flat to negative growth” in Europe and North America hit Aramex’s Q4 revenues.
 
But he was still buoyant about 2008 after reporting strong revenues for the whole year.

“2008 was a good year; we were able to maintain our revenue growth and profit margins at a very healthy level, a result of a very serious effort to control the upward spiraling costs in the first nine months of the year,” he said.

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