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Tue 14 Aug 2012 01:57 PM

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Kuwait's Agility posts flat Q2 net profits

The logistics firm facing US fraud charges made a profit of US$27.71m in the three months to June 30

Kuwait's Agility posts flat Q2 net profits

Kuwaiti logistics company Agility posted flat second-quarter net profit on Tuesday and confirmed it did not take any provisions against its suspension from dealing with the US army.

The logistics firm facing US fraud charges made a profit of KWD7.82m (US$27.71m) in the three months to June 30, it said in a bourse statement on Tuesday, against KWD7.83m in the year-ago period.

Earnings per share for the second quarter were 7.85 fils compared to 7.79 fils a year earlier, it 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 last year to charges it defrauded the US government over multi-billion-dollar supply contracts.

The company is barred from bidding for new US government contracts pending the outcome of the cases.

Agility filed for US$225m in claims against the US Defence Logistics Agency in April, saying the agency had breached the terms of a contract to distributed food to combat units. This comprises the amount owed in performance-based distribution fees plus interest.

Last month, the firm won a two-year contract worth US$238m to supply logistics support to the Gorgon natural gas project in Australia. It also got two-year extension of existing contract with Gorgon worth US$262m.

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