We noticed you're blocking ads.

Keep supporting great journalism by turning off your ad blocker.

Questions about why you are seeing this? Contact us

Font Size

- Aa +

Thu 12 Aug 2010 05:15 PM

Font Size

- Aa +

Kuwait's Agility Q2 net profit down 52%

Logistics firm's net profit in the three months to June 30, came in at KD18.09m ($62.90m).

Kuwait's Agility Q2 net profit down 52%
(Getty Images - for illustrative purposes only)

Kuwait's Agility, the logistics firm facing US fraud charges for overcharging the military, posted a 52-percent fall in second-quarter net profit.

The firm, formerly Public Warehousing Co(PWC), was dropped from supplying food to the U.S. Army in Iraq, Kuwait and Jordan after being accused of overcharging the military.

The company held contracts with the US military worth $8.5 billion spanning more than three years.

Net profit in the three months to June 30, was 18.1 million dinars ($62.9m), down from 38.0 million dinars in the same period a year earlier, Agility said in a statement on the Kuwaiti bourse website on Thursday.

The firm did not provide a reason for the profit drop.

Analysts surveyed by Reuters had expected Agility's second-quarter net profit to range between 14 million and 17.9 million dinars.

On Sunday, the logistics firm confirmed that U.S. prosecutors have moved to dismiss fraud indictments against its subsidiary, Agility Holdings.

Agility has said it is still negotiating a settlement with the U.S. government, but it is not clear if it could lead to lifting the ban on bidding for any new contracts.

Net profit in the first half of the year was 35.7 million dinars, down from 74.9 million dinars in the year-earlier period, Agility said in the statement on Thursday.

Total assets in the six months to June 30 was 1.6 billion dinars, while shareholders' equity stood at 951.3 million dinars.

Agility's shares closed 2.1 percent higher earlier on Thursday. The results were released after the market closed. (Reuters)

Arabian Business: why we're going behind a paywall

For all the latest Kuwait news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.