Logistics firm says performance drop a result of lost defence and government work
Kuwait's Agility, the logistics firm facing US fraud charges, posted a 42 percent fall in third-quarter net profit on the back of lost defence and government work, the firm said on Monday.
Net profit in the three months to September 30 came in at KD8.1m ($29.4m), compared with net profit of KD13.9m in the year earlier period, Agility said in a statement.
"Revenue and net profit fell ... from the same period last year mainly as a result of lost defense and government business. Agility's commercial logistics business has also been impacted by volatility in the market and a softening of volumes," Agility said.
Agility, which was the largest supplier to the US Army in the Middle East during the war in Iraq, pleaded not guilty in August to charges it defrauded the US government over multibillion-dollar supply contracts.
"All signs point to challenging conditions in the global economy as we move towards 2012...we will thus continue to exercise discipline in our cost structure and cash management, as we simultaneously move forward with our growth and transformation strategy," Agility's chairman Tarek Sultan said in the statement.
Agility's shares closed flat at 0.39 dinars on Monday. The results were released after the market closed.