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Sun 20 Jun 2010 02:52 PM

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Aramex CEO Fadi Ghandour sees Q2 profit increase

Dubai-based firm looking to conclude a JV deal in China over next few months.

Aramex CEO Fadi Ghandour sees Q2 profit increase
FUTURE PLANS: Aramex is looking to make two acquisitions before the end of the year, Ghandour said. (ITP Images)

Dubai-based logistics firm Aramex, whose first-quarter profit rose 10 percent, on Sunday said it expected second-quarter profit to be in line with the first, helped by a recovery in global markets.

Speaking to Reuters, chief executive Fadi Ghandour also said the company was looking to conclude a joint venture deal in China in the next few months and two acquisitions before the end of the year.

"(For Q2) we are in line with Q1," said Ghandour. "Trading is back on track and we are having some healthy revenue growth."

Dubai-listed Aramex posted a 10 percent rise in first-quarter net profit to AED47.5 million ($12.93 million), slightly exceeding expectations.

The firm competes with global giants such as Fedex and DHL.

In January, Ghandour told Reuters the firm was in talks to sign a joint venture with a Chinese firm, as it looks to take advantage of an uptrend in exports in the world's third-largest economy.

Talks were still ongoing with the Chinese company but are yet to be finalised, Ghandour said on Sunday.

On acquisitions, he said: "We have identified some targets and that's on track for the next four quarters. (We are looking) at not more than two for this year."

He added the firm is most likely to conclude those in the fourth-quarter of the year.

Ghandour had told Reuters in January that the company aimed to enter at least 10 new key markets through small acquisitions over the next two years, and eyed areas including Africa, the CIS countries (former soviet nations) and Asia.

Logistics firms have suffered during the economic downturn and a rare decline of China's exports for the most part of 2009, but a recovery has taken root since the middle of last year. (Reuters)

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