Monday, April 12, 2010

Agility Releases 2009 Results After Delay

Talks Still Ongoing On Legal Issue with US Government
Shipping News Feature

KUWAIT – Logistics and freight forwarding giant Agility, the largest such company in the Middle-East, has released its end of year figures for 2009 after delaying for a week.

The group, which has been embroiled in a controversial dispute with the US Department of Justice over allegations that the company overcharged on governmental contracts to supply US troops in Iraq, has revealed that its revenue for 2009 dropped by just over 7% in comparison to the previous year from 1.84 billion to 1.7 billion Kuwaiti Dinar (KD).

However, Agility did state that due to austerity measures the company had in fact managed to boost its end-of-year profits by 10.7 % to 156.4 million KD.

Speaking of the results Tarek Sultan, Agility’s Chairman and Managing Director, said that:

“2009 was a mixed year for Agility. On one hand, the company was able to report solid operational profits, continue to grow its emerging market footprint, and attract a number of important new customers around the world. This is particularly significant given a global financial crisis that hit the logistics industry hard overall.

“On the other hand, Agility is facing a number of challenges, including the slower-than-expected recovery from the global economic recession, the troop drawdown in Iraq, and the ongoing legal issues.”

The delaying of their results had sparked speculation that their problems with the American government were on the point of resolution, with reports in the Kuwaiti press on Friday stating that the two parties were to agree a US$600 million compensation deal.

However, Agility has reiterated its position on this issue, stating that the group: “…continues its discussions with the US government with the view to resolving the current legal cases with the US Department of Justice. However, there is no guarantee that the parties can reach a mutually agreeable settlement.”

Despite this, Tarek Sultan remained upbeat, pointing out that: “It has been a tough year, for the global economy, for the logistics industry, and for Agility. Yet we have performed well in these challenging times.

“We see the challenges facing the company as a call to action, to build an even stronger, more flexible, efficient, and competitive Agility.”