ArabianBusiness.com - Middle East Business News
Sunday, 08 November 2009 11:32 UAE time

YOUR DIRECTORY /

| Share |

Aramex posts 19% rise in Q1 net profit

by This email address is being protected from spam bots, you need Javascript enabled to view it  on Sunday, 03 May 2009
PROFIT ANNOUNCEMENT: Aramex has posted a net profit rise of 19 percent in the first quarter of 2009.

International logistics company Aramex on Sunday announced net profits of AED43.1m ($11.7m) for the first quarter of 2009, a 19 percent rise from AED36.2m for the same period last year.

The firm’s revenues for the three-month period ending March 31 declined by six percent to AED463.4m compared to the same period in 2008, due to a global slowdown in trading and industrial output, the Jordan-based company said in a statement.

But Aramex’s revenues in the GCC showed an increase of five percent over the same first quarter last year, fuelled by growth in domestic and international express services, and despite a double-digit drop in freight forwarding revenues, said the firm, which has shares listed on the Dubai Financial Market and NASDAQ.


Story continues below
advertisement

It said its strong financial performance reflected the adaptability of the company’s “asset-light” business model and its ability to adopt cost-effective programmes amid challenging market conditions.

The depressed economic climate helped Aramex in reducing costs by negotiating better rates with its major suppliers.

Aramex said it maintained a strong financial position backed by AED342.8m in cash and a very low debt position.

“Working as a team, we controlled costs at all levels, pursued market share aggressively, negotiated with suppliers, and protected our existing clients,” Fadi Ghandour, founder and CEO of Aramex, said. “As a result of these actions, our margins have improved.”

The company blamed a slowdown in global trade for hitting its freight activities, particularly in European and North American markets.  Freight revenues declined by 20 percent to AED174.5m in the first quarter of 2009, compared to AED218.8m during the same period in 2008.

Its revenues from international express grew by four percent in the first quarter from a year earlier, with revenues from its domestic express network growing by 10 percent.

| Share |


READERS' COMMENTS

Disclaimer: The views expressed here by our readers are not necessarily shared by ArabianBusiness.com or its employees.

Click here to post a comment


Add your Comment
All posts are sent to the administrator for review and are published only after approval. ArabianBusiness.com reserves the right to remove any comment at any time for any reason. Please keep your responses appropriate and on topic.
Name *
Remember me on this computer
Email *
(Your email address will not be published)
City
Country
Subject *
Comment *
Notify me of further comments


Please click post only once - your comment will not be published immediately.


MORE FROM ARABIANBUSINESS.COM

SHARE PRICE CHECK

more » MIDDLE EAST MARKETS DATA

ARMX.DFM

Last Price:

1.74

+0.05+2.96%

8 Nov 2009 07:26 GMT
(Market Open)

RELATED LINKS

  1. Aramex»

 EMAIL ALERTS

  1. Aramex

  2. Transportation


CURRENCY CONVERTOR

Tell us your story

READER COMMENTS

  1. The tipping scandal 14
    08 Nov ' 09 at 11:12
    What a shame!!I always tip the people in the gas stations and in the restaurant thinking they will benefit from that!!It's so sad!   More  »
  2. Abu Dhabi to ban all plastic bags in shops by mid-2010 07
    08 Nov ' 09 at 10:31
    I cant believe Chris was the first person to point out that paper bags also have an environmental cost in the form of chopped trees...   More  »
  3. UAE to be among top tourist hubs in 5 years - survey 06
    08 Nov ' 09 at 09:05
    It just boils down to one thing- There are countries who try to market their toursim potential. And there are countires who do not...   More  »

Read all user comments >

Gitex 2009

MORE FROM ARABIANBUSINESS.COM